Crypto Update: Grayscale ETF Experiences First-Time Outflow, ARKB Loses $87.5 Million

It’s a new dawn for the Grayscale Bitcoin Trust (GBTC), as data from Coinglass reveals that the trust recorded its first-ever lower outflows since the launch of spot Bitcoin Exchange Traded Funds (ETFs) on April 2, setting it apart from ARK 21Shares (ARKB) which posted outflows worth $87.5 million. Moreover, GBTC marked its lowest outflows since March 12, at $82 million. The outflows data for other ETFs such as IBIT and FBTC was not publicly available at the time of writing this article.

GBTC outflows

GBTC’s recent reduced outflows are of significant interest as the fund is generally characterized by high outflows. Historical data indicates GBTC has seen a net outflow of $15 billion since it started trading in January, making it the only spot Bitcoin ETF with a negative net flow. However, on the brighter side, the spot Bitcoin market has been enjoying positive net inflows, with the ‘Newborn Nine’ recording over $12 billion in net inflows since their launch.

Particularly, the last week of March witnessed a significant surge in inflows as spot Bitcoin ETFs attracted over $800 million. Bloomberg ETF analyst Eric Balchunas stated that spot Bitcoin ETF trading volumes reached $111 billion in March, tripling the levels recorded in January and February.

Interest in Bitcoin

Bitcoin ETFs, namely IBIT and FBTC, launched by BlackRock and Fidelity respectively, have experienced a rapid surge in popularity. These ETFs have outperformed hundreds of other funds offered by these financial giants, attracting unprecedented levels of investment within the first three months of their launch.

Interestingly, IBIT accounted for over half of BlackRock’s yearly net inflows, while FBTC constituted 70% of Fidelity’s. This trend clearly showcases the growing appeal of Bitcoin among traditional investors. It is worth noting that IBIT has grown faster than any other ETF in history.

Both ETFs have demonstrated a streak of continuous cash inflows for 52 consecutive days, a rare achievement in the ETF realm. This indicates a robust investor confidence in these ETFs, placing them among those with significant and sustained investor interest.

Contrary to popular belief, ETF investors have continued strategic investments in these Bitcoin ETFs despite price fluctuations. This suggests a more sophisticated and resilient investor base that exhibits strategic patience and confidence, even during challenging market conditions.