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Cathie Wood’s ARK 21Shares Bitcoin ETF Records Daily Outflows
Cathie Wood’s ARK 21 Shares Bitcoin exchange-traded fund (ETF) has recorded daily outflows of over $87 million, marking the first time it witnessed larger daily outflows than Grayscale’s Bitcoin Trust (GBTC).
ARK 21Shares Bitcoin ETF Outflows
According to data from Farside Investors, ARK 21Shares Bitcoin ETF (ARKB) saw outflows amounting to $87.5 million on Tuesday, which is approximately equivalent to 1,300 BTC. This comes as the second consecutive day of outflows for ARKB, as it lost $300,000 on its first-ever day of outflows on Monday.
GBTC Outflows
Meanwhile, Grayscale’s Bitcoin Trust (GBTC) recorded a daily outflow of $81.9 million. Although this is a relatively low outflow for GBTC, it is worth noting that the trust has experienced consistent outflows every trading day since its conversion to a spot ETF.
BlackRock’s Fund Inflow
Despite the outflows from ARKB and GBTC, BlackRock’s fund saw an inflow of $150.5 million, leading to a net aggregate inflow of $40.3 million for the day.
ARKB and GBTC Comparison
- ARKB currently stands as the third largest among the ten newly launched spot ETFs, excluding Grayscale, with $2.2 billion in assets under management (AUM).
- BlackRock’s and Fidelity’s funds have respective AUMs of $14.1 billion and $7.6 billion, surpassing ARKB.
- ARKB is the sixth-largest holder among funds, corporations, and miners, currently owning a total of 44,662 BTC.
- GBTC remains the leader in total Bitcoin held, with around 329,000 Bitcoin on its books at the time of publication.
Market Dynamics and Recent Developments
The recent decline in the price of Bitcoin, coupled with the introduction of leveraged spot Bitcoin ETFs, has impacted the market dynamics.
Leveraged Spot Bitcoin ETFs
The introduction of the first-ever 2x and -2x leveraged spot Bitcoin ETFs, trading under the tickers BITU and SBIT, has added to the dynamics of the market. These ETFs are expected to be among the top 5 most volatile ETFs in the US, with a standard deviation of approximately 150%.
Bitcoin ETF Trading Volume
Bloomberg ETF analyst Eric Balchunas highlighted a significant increase in Bitcoin ETF trading volume, reaching around $111 billion in March, nearly triple the combined volume of February and January.
Market Sentiment and Investment Products
Digital asset investment products experienced a positive turnaround in sentiment last week, with inflows recovering from previous outflows.
Inflows and Outflows
Bitcoin products attracted almost all of the inflows, drawing around $865 million, while Grayscale experienced outflows of $967 million during the same period.
Regional Inflows and Outflows
The United States witnessed additional inflows, while Europe and Canada combined experienced outflows, bringing the year-to-date outflows for these regions to $785 million.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
