25 April, 2024

ARKB Outpaces GBTC in Biggest-Ever Bitcoin ETF Outflows

03 Apr, 2024

03 Apr, 2024

  • Bitcoin price dips slightly trading around $65,881 continuing a recent downward trend.
  • Q1 2024 saw strong inflows into Bitcoin ETFs, indicating overall positive investor sentiment and market growth.
  • March 28 marked the highest single-day inflow for Bitcoin ETFs showcasing investor confidence in the asset class.

Bitcoin (BTC) outflows from Cathie Wood’s ARK 21Shares exchange-traded fund (ARKB) surpassed those of Grayscale’s Bitcoin Trust (GBTC) for the first time on Tuesday. Data from Farside Investors revealed that ARKB witnessed record net outflows exceeding $87.5 million surpassing GBTC’s outflows of $81.9 million. This marks a significant shift as ARKB had previously enjoyed a cumulative net inflow of $2.2 billion since its launch in January.

These record outflows from ARKB coincided with a slight dip in Bitcoin’s price. The world’s leading cryptocurrency was trading at around $65,881 on Tuesday down roughly 1.4% in the past 24 hours. This decline extends a losing streak for Bitcoin which has fallen over 6.6% in the past week.

The timing of these events coincides with the highly anticipated Bitcoin halving event expected later this month. Historically, halving events have been associated with bearish trends in the short term. However, experts remain divided on the long-term impact. Some, like Mark Yusko of Morgan Creek Capital Management, predicted a surge in investor interest driven by FOMO (fear of missing out) potentially pushing Bitcoin’s value to $150,000 by year-end.

However, it’s important to consider the broader context of Bitcoin ETFs. Spot Bitcoin Exchange-Traded Funds (ETFs) witnessed a strong start in Q1 2024 attracting a net inflow of over $12.1 billion according to Farside Investors data. This positive sentiment is reflected in the daily net flow figures for various Bitcoin ETFs like iShares Bitcoin Trust (IBIT) and Fidelity Bitcoin Trust (FBTC), which saw significant inflows throughout Q1.

Source: Farside Investors

While ARKB’s recent outflows are a cause for concern, they should be viewed in light of the overall positive performance of Bitcoin ETFs in Q1. The data further illustrates a positive sentiment among investors with daily net flows showcasing consistent growth. March 28 notably saw the highest single-day inflow of $243.5 million, indicating strong confidence in the potential of Bitcoin ETFs.



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