ARKB Bitcoin ETF faces record outflow amid market volatility

Ark Invest’s 21Shares Bitcoin ETF (ARKB) experienced a significant net outflow of $87.5 million on Tuesday. This marks the highest single-day outflow for the fund since its inception, as per data from SoSoValue. This event surpassed the outflows of Grayscale’s GBTC, which saw $81.9 million withdrawn on the same day. Prior to this, ARKB had faced its first net outflow just a day earlier, signaling a shift in investor sentiment.

Despite the recent outflows, ARKB still boasts a cumulative net inflow of $2.2 billion to date. The data highlights the fund’s ability to attract substantial investment, although recent trends suggest a potential change in investor behavior. Meanwhile, other funds like BlackRock’s IBIT and Fidelity’s Bitcoin fund recorded net inflows, showcasing the varied performance within the sector.

Industry-wide trends in Bitcoin ETFs

The 11 U.S. spot bitcoin ETFs across the board reported a net inflow totaling about $39.47 million, based on SoSoValue’s data. It happens when the cryptocurrency market, especially Bitcoin, is volatile. The price of Bitcoin dropped by 6.6% over the week, although yesterday, it managed to put on a 1.15% increase and was last seen quoted at $67,176.79.

BTC/USD 24-hour price chart (source: CoinMarketCap)

The variation in the Bitcoin ETFs is associated with the price swings of the cryptocurrency. The bitcoin halving event to come is rather interesting because it has always been linked to short-term bearish effects, but the trend reverses in the long run. Experts such as Justin d’Anethan and Mark Yusko have expressed their opinions, predicting increased interest and value surges of Bitcoin after the halving.

Market outlook and trading volume surge

March witnessed a significant rise in trading volume for spot Bitcoin ETFs, reaching $111 billion. This nearly tripled February’s volume of $42.2 billion, as reported by Bloomberg ETF analyst Eric Balchunas. The increase in trading volume indicates heightened activity and interest in Bitcoin ETFs despite the recent outflows and market fluctuations.

At the start of April, Bitcoin ETFs began to fall into negative territory, with total outflows of $85.7 million on the first day. However, 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.