- Cathie Wood’s ARK 21Shares Bitcoin ETF experienced a historic daily outflow of over $87 million, surpassing Grayscale’s Bitcoin Trust (GBTC) for the first time.
- ARK 21Shares Bitcoin ETF remains the third-largest among newly launched spot ETFs, with $2.2 billion in assets and holding 44,662 bitcoins.
- Grayscale’s Bitcoin Trust maintains the highest total Bitcoin holdings, with around 329,000 BTC.
Cathie Wood’s ARK 21Shares Bitcoin exchange-traded fund (ETF) experienced a historic daily outflow of over $87 million on April 2. This marked the first time that the fund witnessed a larger daily outflow than Grayscale’s Bitcoin Trust (GBTC) since the launch of spot Bitcoin ETFs in the United States.
Historic Daily Outflow: ARK 21Shares Bitcoin ETF
According to data from Farside Investors, the outflows from the ARK 21Shares Bitcoin ETF, also known as ARKB, amounted to $87.5 million, which is roughly equivalent to 1,300 BTC. This outflow follows a loss of $300,000 in assets on the ETF’s first-ever day of outflows on April 1, making it the second consecutive day of outflows for ARKB.
Grayscale’s Bitcoin Trust: Decreased Outflow
Grayscale’s Bitcoin Trust, on the other hand, recorded a daily outflow of $81.9 million. Although significant, this outflow was relatively lower compared to its average daily outflow of $254 million over the past five trading days. Grayscale has witnessed a total outflow of approximately $15.1 billion over the past three months, highlighting the sustained trend of investors moving away from GBTC.
ARKB’s Position in the Market
Despite the recent outflows, ARKB remains the third-largest among the nine newly launched spot ETFs, excluding Grayscale. With $2.2 billion in assets under management (AUM), ARKB trails behind BlackRock’s and Fidelity’s funds, which command respective AUMs of $14.1 billion and $7.6 billion. This demonstrates the dominance of these established players in the market.
ARKB’s Bitcoin Holdings
It is worth noting that ARKB holds a significant amount of Bitcoin, making it the sixth-largest holder of BTC among funds, corporations, and miners. According to data from HODL15Capital, ARKB currently has 44,662 BTC on its books. Despite shedding approximately 291,000 Bitcoin since its conversion to an ETF, GBTC continues to lead the pack in terms of total Bitcoin holdings, holding around 329,000 BTC at the time of publication.
Bitcoin Price Decline and ETF Outflows
The recent decline in the price of Bitcoin has added to the challenges faced by these ETFs. Bitcoin experienced a 9% drop from last week’s high of $71,500, briefly dipping below $65,000 on April 3. The increasing outflows from the ETFs have likely contributed to the downward pressure on Bitcoin’s price.
Introduction of Leveraged Spot Bitcoin ETFs
In another notable development, Bloomberg ETF analyst Eric Balchunas highlighted the launch of the first-ever 2x and -2x leveraged spot Bitcoin ETFs in an April 2 post. These ProShares-based funds, known by the tickers BITU and SBIT, are expected to rank among the top five most volatile ETFs in the United States, with a standard deviation of approximately 150%. This introduction further diversifies the range of options available to investors looking to gain exposure to Bitcoin through ETFs.
Positive Net Inflows Despite Challenges
Despite the challenges faced by the market, Bitcoin ETFs saw net inflows of $38.8 million on April 2. This positive inflow was driven by the strong performance of BlackRock’s IBIT and Fidelity’s FBTC, which played a crucial role in the overall net aggregate inflows of $40.3 million for the day, even in the face of outflows from ARKB and GBTC.
Conclusion
In conclusion, Cathie Wood’s ARK 21Shares Bitcoin ETF experienced a historic daily outflow of over $87 million on April 2, surpassing Grayscale’s Bitcoin Trust’s outflow for the first time since the introduction of spot Bitcoin ETFs in the United States. Despite this outflow and a preceding day’s loss, ARKB remains the third-largest among the newly launched spot ETFs, excluding Grayscale, with $2.2 billion in assets under management and holding 44,662 bitcoins. Meanwhile, despite consistent outflows, Grayscale leads in total Bitcoin holdings with around 329,000 BTC. The price of Bitcoin declined around 9% from the previous week, amidst increasing ETF outflows. Bitcoin ETFs still saw net inflows of $38.8 million on April 2, led by BlackRock’s IBIT and Fidelity’s FBTC.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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