TL;DR
- Significant movements occurred in the fund flows to and from Bitcoin investment funds.
- ARK 21Shares Bitcoin ETF saw fund outflows of $88 million, surpassing Grayscale’s Bitcoin Trust (GBTC) for the first time.
- GBTC has experienced a continuous trend of fund outflows, exceeding $15 billion, while other funds like BlackRock’s IBIT and Fidelity’s FBTC received notable fund inflows.
Recently, significant movements were observed in the fund flows to and from Bitcoin investment funds. This trend led to a particular event on Tuesday when ARK 21Shares Bitcoin ETF registered fund outflows totaling $88 million, surpassing Grayscale’s Bitcoin Trust (GBTC) for the first time in terms of fund outflows. This development marked a shift in the cryptocurrency investment market.
Provisional data from Farside Investors shows that ARKB outflows exceeded those of GBTC, which recorded outflows totaling $81 million on the same day. This change suggests a redistribution of Bitcoin investments among different vehicles, with investors showing a greater preference for vehicles other than ARK 21Shares.
Bitcoin ETF Flow (US$ million) – 2024-04-02
TOTAL NET FLOW: 40.3
(Provisional data)IBIT: 150.5
FBTC: 44.8
BITB: 4.3
ARKB: -87.5
BTCO: 0
EZBC: 0
BRRR: 3.7
HODL: 5.6
BTCW: 0
GBTC: -81.9
DEFI: 0.8For all the data & disclaimers visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) April 3, 2024
It is noteworthy that ARK 21Shares Bitcoin ETF’s fund outflows on Tuesday were the largest since its launch in January. This significant drop in the fund’s assets under management could indicate profit-taking by investors or possibly a rotation into other assets within the crypto market.
Meanwhile, GBTC has been experiencing a continuous trend of fund outflows since March 15, with total outflows surpassing $15 billion. This sustained loss of funds could be related to various factors, including competition from other BTC investment products, as well as concerns about the structure and fees associated with Grayscale’s trust.
Is ARK Beginning to Lag Behind?
On the other hand, other funds have experienced significant fund inflows in recent days. BlackRock’s IBIT attracted an additional $150 million, while Fidelity’s FBTC received $44 million in new investments. This indicates that investors continue to show interest in the market despite its volatility.
Bitcoin is undergoing a growing diversity in investment vehicles, allowing the community to expose themselves to the cryptocurrency in different ways. With competition on the rise, it will be interesting to see how fund flows develop and how market participation changes in the near future.
