ARK Bitcoin ETF Records $87M Outflow, Exceeds GBTC

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Key Takeaways

  • Outflow from ARKB was $87.5 million on April 2  which amounts to 1,300 BTC
  • On April 2, Grayscale recorded a daily outflow of $81.9 million

Bitcoin outflows from ARK 21Shares exchange-traded fund (ARKB) surpassed those of Grayscale’s Bitcoin Trust (GBTC) for the first time on Tuesday. Managed by Cathie Wood’s ARK Invest, ARK 21Shares Bitcoin ETF recorded daily outflows of over $87 million, marking a significant shift compared to Grayscale’s BTC Trust.

According to data from Farside Investors, ARKB saw significant outflows totaling $87.5 million on Tuesday, which is approximately equivalent to 1,300 BTC. These outflows represent the largest since the fund’s inception in January, with losses of $300,000 recorded on the previous day, marking its first-ever outflows.

On the same day, Grayscale’s BTC Trust recorded outflows of $81.9 million. Although it has consistently experienced outflows since transitioning to a spot ETF, GBTC’s average daily outflows over the past five trading days have been considerably higher, averaging $254 million.

Despite the significant outflows from both ARKB and GBTC, BlackRock’s fund saw a $150.5 million inflow, resulting in a net aggregate inflow of $40.3 million for the day.

Despite recent outflows, ARKB remains the third-largest among newly launched spot ETFs, excluding Grayscale. It boasts $2.2 billion in assets under management (AUM). ARKB trails behind BlackRock’s and Fidelity’s funds, which have AUMs of $14.1 billion and $7.6 billion, respectively.

Currently, ARKB holds 44,662 BTC, positioning it as the sixth-largest BTC holder among funds and miners. However, GBTC still leads in terms of total Bitcoin held, with approximately 329,000 BTC in its portfolio.

Despite the decline in Bitcoin’s price since the beginning of the month, falling around 9% from last week’s high of $71,500 and briefly dipping below $65,000 on April 3, investor interest in Bitcoin-related funds remains substantial.

Grayscale has seen total outflows exceeding $15 billion since March 15. Meanwhile, BlackRock’s IBIT and Fidelity’s FBTC continue to attract significant inflows, highlighting the dynamic nature of investor sentiment in the cryptocurrency market.

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Saniya Raahath
Saniya Raahath

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