After enduring four consecutive weeks of outflows, spot bitcoin exchange-traded funds (ETFs) in the United States have made a remarkable comeback, showcasing net inflows amounting to $116.8 million over the past week.

In a noteworthy shift, Grayscale's converted Bitcoin Trust (GBTC) emerged as the sole spot bitcoin ETF to observe net outflows during this period, with a total of $171.1 million exiting the fund. Despite a brief interruption in its 78-day outflow streak earlier in May, highlighted by $63 million of net inflows on May 3 and an additional $3.9 million the subsequent Monday, GBTC experienced a setback in net flows during the recent week.

Fidelity's FBTC took the lead in attracting net inflows last week, amassing a substantial $111.3 million, closely followed by Ark Invest's ARKB, which secured $82.8 million. Although BlackRock's IBIT, a previously predominant spot bitcoin ETF, witnessed subdued activity in recent weeks, it managed to gather $48.1 million in net inflows, ranking it third for the week. Collectively, these ETFs have drawn a cumulative total of $11.7 billion in net inflows.

The resurgence in inflows denotes a significant turnaround from the peak net daily inflow of $1.05 billion documented on March 12, which coincided with Bitcoin's 23% decline from its all-time high of $73,836 on March 14 to a low of $56,500 on May 1, before rebounding to its current trading level at around $62,700.

This positive trend in inflows transcends the US spot bitcoin ETFs, as the global crypto investment product market has witnessed net inflows totaling $130 million, marking the first such influx in five weeks, as disclosed by CoinShares.

Despite the reversal in flows, trading volume for US spot bitcoin ETFs exhibited a decrease to $7.4 billion last week, down from $11 billion in the preceding week. This trend is mirrored in the broader global crypto exchange-traded product market, which saw a decline to $8 billion compared to the April weekly average of $17 billion.

James Butterfill, Head of Research at CoinShares, pointed out a reduction in participation by Exchange-Traded Product (ETP) investors in the crypto ecosystem, constituting 22% of total volumes on global reputable exchanges, down from 31% in the previous month.

While the upsurge in net inflows for US spot bitcoin ETFs signifies a positive shift, the sustainability of this reversal in trend for the category remains uncertain. Conversely, investment products based on ether experienced net outflows amidst diminishing optimism over the forthcoming approval of spot ether ETFs in the US, with outflows totaling $14 million last week. Butterfill attributed this downturn to a decreased engagement by US regulators with ETF issuer applications, dampening hopes for swift approval.