Grayscale's Bitcoin Investment Trust (GBTC) has witnessed a remarkable turnaround, recording its first net inflow of $4.64 million since its conversion in January, following a prolonged period of significant net outflows. This positive shift coincides with a surge in inflows across spot Bitcoin exchange-traded funds (ETFs), particularly in the last four days, which saw the highest flow of approximately $257.34 million on May 16.

The resurgence of interest in Bitcoin ETFs can be partly attributed to the first-quarter 13F reporting season on Wall Street, where major financial companies disclosed substantial Bitcoin stakes that exceeded certain projections. BlackRock's iShares Bitcoin Trust (IBIT), the second-largest trust by net asset value, received the highest inflow of $94 million on Thursday, marking a stark contrast to the lack of positive inflow tendencies observed over the previous three weeks. Fidelity's Bitcoin ETF (FBTC) closely followed suit, gaining $67 million, while Ark Invest's and 21Shares' Bitcoin ETFs secured $62 million in net inflows.

The positive trend extends beyond the top players, with Valkyrie's Bitcoin ETF raking in $18.5 million and funds from Bitwise, Franklin Templeton, Invesco, and Galaxy Digital securing single-digit inflows. This broad-based participation across the investment spectrum underscores the growing interest in spot Bitcoin ETFs.

Major financial institutions have also joined the fray, with Morgan Stanley and the State of Wisconsin Investment Board disclosing holdings in spot Bitcoin ETFs that exceeded initial expectations. As of March 31st, 2024, Morgan Stanley held over $270 million, and Wisconsin held $163 million. Adding further momentum to this trend, international hedge fund Millennium Management revealed a staggering $1.94 billion investment in shares across five spot Bitcoin ETFs as of March 31st, with BlackRock's Bitcoin ETF representing their largest holding, closely followed by Fidelity's offering.

Despite the increasing interest, some major players remain cautious. Vanguard's new CEO, Salim Ramji, has maintained the company's stance against launching a spot Bitcoin ETF, citing the complexity and nuance of the market's view concerning these investments. However, the fact that major institutional investors are becoming more interested in these ETFs is undeniable, with banking firms such as JPMorgan and financial firms like Bracebridge Capital making commitments to these products.

Furthermore, Galaxy Digital, which recently saw a 40% increase in its net earnings partly due to the influence of these ETFs, suggests a possible correlation with Bitcoin's price shock this week. These developments have the potential to propel Bitcoin to register significant gains in the coming months as more major players join the arena, solidifying the growing institutional interest in spot Bitcoin ETFs across Wall Street.