ARK Bitcoin ETF Daily Outflows Surpass Grayscale’s GBTC for the First Time

Apr. 3, 2024
ARK Bitcoin ETF Daily Outflows Surpass Grayscale’s GBTC for the First Time

Cathie Wood’s ARK 21Shares Bitcoin ETF (ARKB) saw net outflows of $87.5 million on April 2, the highest since its debut, according to preliminary data from Farside Investors. This outflow is equivalent to approximately 1,300 BTC. The amount surpasses outflows seen from Grayscale’s Bitcoin Trust (GBTC), which recorded $81.9 million on the same day. 

This marks the second consecutive day of outflows for Ark 21Shares Bitcoin ETF. On April 1st, the fund experienced its first-ever day of outflows, resulting in a loss of $300,000 in assets. On Tuesday, BlackRock’s IBIT posted the highest net inflow of $150.5 million, followed by Fidelity’s FBTC, which added $44.8 million to its fund. Bitwise and VanEck’s ETFs saw inflows ranging from three to five million dollars. Overall net inflows reached $40 million, up from net outflows of $86 million on Monday.

GBTC Sees Consistent Outflows

Although $81.9 million is a relatively low outflow for GBTC, it is worth noting that the fund has posted consistent outflows every trading day since converting to a spot Bitcoin ETF. Over the past five trading days, Grayscale’s Bitcoin ETF has shed an average of $254 million per day. This has led to a total outflow of around $15.1 billion in the past three months. 

Despite experiencing outflows over the past two days, ARKB is the third largest among the ten recently launched spot ETFs, excluding Grayscale. Its assets under management (AUM) total $2.2 billion.
ARKB falls behind BlackRock’s and Fidelity’s funds, which have AUMs of $14.1 billion and $7.6 billion, respectively.

Bitcoin ETF flows
Bitcoin ETF flows USD. Source: Farside Investors

In terms of Bitcoin holdings, ARKB is the sixth-largest holder, owning 44,662 BTC. Meanwhile, GBTC remains the top leader, holding around 329,000 BTC despite shedding 291,000 BTC since its conversion to an ETF, as per data from HODL15Capital.

The recent decline in BTC’s price, which fell nearly 9% from last week’s high of $71,500 and briefly dipped below $65,000 on April 2, has coincided with increased outflows from ETFs. The price drop triggered a massive liquidation of over $480 million worth of leveraged crypto positions on CEXs.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.