Ark Invest’s 21Shares Bitcoin ETF (ARKB) witnessed a significant outflow of $87.5 million on Tuesday, marking its highest single-day outflow since its inception, according to data from SoSoValue. This surpasses the outflows of Grayscale’s GBTC, which saw $81.9 million withdrawn on the same day. The previous day, ARKB experienced its first net outflow, indicating a shift in investor sentiment.
Despite these recent outflows, ARKB has accumulated a net inflow of $2.2 billion to date, showcasing its ability to attract substantial investment. However, recent trends suggest a potential change in investor behavior. On the other hand, funds like BlackRock’s IBIT and Fidelity’s Bitcoin fund recorded net inflows, highlighting the varied performance within the sector.
In the broader Bitcoin ETF industry, the 11 U.S. spot bitcoin ETFs reported a net inflow of approximately $39.47 million, according to SoSoValue’s data. This inflow comes amid volatility in the cryptocurrency market, particularly Bitcoin. Bitcoin’s price has dropped by 6.6% over the week, but yesterday it experienced a 1.15% increase and was last quoted at $67,176.79.
The performance of Bitcoin ETFs is closely tied to the price swings of the cryptocurrency. The upcoming bitcoin halving event is of particular interest, as it has historically been associated with short-term bearish effects followed by long-term reversals. Experts such as Justin d’Anethan and Mark Yusko have expressed their opinions, predicting increased interest and value surges for Bitcoin after the halving.
March saw a significant surge in trading volume for spot Bitcoin ETFs, reaching $111 billion. This nearly tripled February’s volume of $42.2 billion, indicating heightened activity and interest in Bitcoin ETFs despite recent outflows and market fluctuations.
Although Bitcoin ETFs started April in negative territory with total outflows of $85.7 million on the first day, the sector managed to rebound, reflecting the dynamic and volatile nature of cryptocurrency investments. The mixed performance of different funds underscores the diverse strategies and outcomes within the rapidly evolving Bitcoin ETF landscape.
