Ark Invest’s Bitcoin ETF Sees Net Outflows of $87 Million, Surpassing GBTC

Ark Invest 21shares’ spot Bitcoin ETF, ARKB, recorded daily net outflows of $87.5 million on April 2, surpassing Grayscale’s GBTC for the first time.

GBTC’s net outflows during the same period totaled $81.9 million, according to estimated data from Farside Investments. Cumulatively, Bitcoin ETF recorded a net inflow of $40.3 million on this day, reversing the previous day’s negative trend.

ARKB’s net outflow continued the negative trend seen on April 1, its first ever outflow.

Since the U.S. Securities and Exchange Commission (SEC) approved several spot Bitcoin ETFs in January of this year, Grayscale has continued to encourage investors to cash out of its GBTC products.

Investors have moved their funds out of the products due to the low fees charged by BlackRock and other spot Bitcoin ETFs. These products charge investors an annual fee of 20 to 30 basis points, and some products waive the fee entirely for early buyers. Instead, Grayscale charges 1.5%.

Ark Invest’s ARKB charges 0.21%. Only VanEck’s HODL, Bitwise’s BitB, and Franklin Templeton’s EZBC charge lower fees.

Last month, Grayscale filed for a “split” product called the Grayscale Bitcoin Mini Trust. bloomberg Analyst Eric Balchunas explanation In a bid to “stop the exodus” of investors from GBTC.

Bitcoin ETF and Halving

Bitcoin ETFs and their preference for BTC have gained attention ahead of the cryptocurrency’s upcoming halving, which will see block rewards for miners cut in half.

Some analysts have argued that the Bitcoin ETF’s preference for BTC, combined with halving of the new Bitcoin supply hitting the market, could lead to a supply crisis. price of bitcoin.

Others have argued that the ETF-led “supercycle” idea is debunked, arguing that previous historical catalysts have equaled or surpassed Bitcoin ETFs absorbing a significant portion of BTC supply.