For the first time since the introduction of spot Bitcoin ETFs in the US market, Grayscale Bitcoin Trust Shares ($GBTC) did not register the most daily outflows from its portfolio, as ARKB Invests’ $ARKB surpassed its $82 million outflows with up to $6 million.
According to a report from Farside Investors, all the spot Bitcoin ETFs in the United States recorded a positive net flow of $40.3 million for the trading day ending Tuesday, April 2, 2024. While other ETFs recorded a positive net flow of $205.4 million, $GBTC and $ARKB reported a combined net outflow of $169.5 million.
Since the launch of the ETFs, $GBTC has seen a staggering $15.15 billion leave its portfolio, as it has never experienced any positive flow of assets. This outflow streak has been attributed to various factors, including its high management fees. Grayscale charges investors a 1.5% trading fee, the highest by a good margin of all other ETFs.
Also, several investors purchased $GBTC at a discount to its value in anticipation of profits from its premium, but since its premium became a discount, many investors have been exiting the ETF.
Despite this deviation, other spot Bitcoin ETF market trends were consistent. The Farside report indicated that BlackRock’s $IBIT remained the most preferred investment option for investors seeking exposure to Bitcoin. The ETF recorded the largest net inflow for the trading day, at $150.5 million, whereas the others had significantly lower amounts.
Meanwhile, there has been a notable correlation between spot Bitcoin ETFs’ net inflow and Bitcoin’s price, with increased net inflows often corresponding to substantial price growth for Bitcoin. For example, on Monday, March 1, Bitcoin ETFs experienced a net outflow of $85.7 million, which coincided with a price drop for Bitcoin from $71,481 to $68,081. The price further declined to a low of $64,518 before rebounding when the ETF market recorded negative net flows for three consecutive days.
Bitcoin is currently trading at around $66,660, according to data from CoinMarketCap.
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