Following a prolonged spell of outflows lasting four consecutive weeks, spot bitcoin exchange-traded funds (ETFs) in the United States have staged a notable rebound, recording net inflows totaling $116.8 million last week.

Grayscale's converted Bitcoin Trust (GBTC) was the sole spot bitcoin ETF to register net outflows during this period, with $171.1 million exiting the fund despite a brief interruption in its 78-day outflow streak earlier in May, with $63 million of net inflows on May 3 and an additional $3.9 million the following Monday.

Fidelity's FBTC emerged as a frontrunner in last week's net inflows, attracting $111.3 million, closely followed by Ark Invest's ARKB, which garnered $82.8 million. BlackRock's previously dominant spot bitcoin ETF, IBIT, while experiencing subdued activity in recent weeks, secured $48.1 million in net inflows, positioning it third for the week. Cumulatively, these ETFs have amassed a total of $11.7 billion in net inflows.

The resurgence in inflows marks a significant turnaround from the peak net daily inflow of $1.05 billion observed on March 12, coinciding 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 staging a recovery to its current trading price of around $62,700.

The positive trend in inflows extends beyond the US spot bitcoin ETFs, as evidenced by the global crypto investment product market witnessing net inflows totaling $130 million, marking the first such influx in five weeks, as reported by CoinShares.

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

James Butterfill, CoinShares' Head of Research, noted a decrease in participation by ETP investors in the crypto ecosystem, representing 22% of total volumes on global trusted exchanges, down from 31% the previous month.

While the surge in net inflows for US spot bitcoin ETFs signals a positive development, it remains uncertain whether it signifies a sustained trend reversal for the category. In contrast, investment products based on ether saw net outflows amid waning optimism regarding the imminent approval of spot ether ETFs in the US, with outflows totaling $14 million last week. Butterfill attributed this decline to reduced interaction by US regulators with ETF issuer applications, dampening expectations for swift approval.