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Ark Invest 21shares ARKB Bitcoin ETF Sees Net Outflows Overtake Grayscale GBTC for First Time
Ark Invest 21shares’s spot Bitcoin ETF, ARKB, experienced significant net daily outflows reaching $87.5 million on April 2, surpassing those of Grayscale’s GBTC for the first time. According to estimated data from Farside Investments, GBTC’s net outflows for the same period amounted to $81.9 million. Cumulatively, Bitcoin ETFs recorded net inflows of $40.3 million for the day, marking a reversal from the negative flows observed the previous day.
This significant net outflow for ARKB continues the negative trend witnessed on April 1, which marked the first day of outflows for the ETF since its inception. The approval of multiple spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in January this year has led to a consistent withdrawal of funds by investors from Grayscale’s GBTC product.
Investors are opting to move their funds out of GBTC due to the comparatively lower fees charged by BlackRock and other spot Bitcoin ETFs. These products impose charges ranging from 20 to 30 basis points per year on investors, with some even waiving fees entirely for early adopters. In contrast, Grayscale imposes a fee of 1.5% on its investors. On the other hand, ARKB charges a modest fee of 0.21%, placing it at the lower end of the fee spectrum along with other ETFs such as VanEck’s HODL, Bitwise’s BitB, and Franklin Templeton’s EZBC, which charge even lower fees.
Grayscale’s Response
Last month, Grayscale filed for a new product known as the “Grayscale Bitcoin Mini Trust,” in a strategic move aimed at stemming the flow of investors away from GBTC. Analyst Eric Balchunas of Bloomberg described this initiative as a bid to “stop the exodus” of investors from the company’s flagship product.
Bitcoin ETFs and the Halving
Bitcoin ETFs and their interest in BTC have garnered increased attention ahead of the cryptocurrency’s upcoming halving event, which will halve the block reward for miners. Some analysts have posited that the combination of Bitcoin ETFs’ demand for BTC and the reduction in the supply of new Bitcoin entering the market due to the halving could trigger a supply shortage that drives up Bitcoin’s price.
Despite these bullish predictions, others have dismissed the notion of an ETF-fueled “supercycle,” arguing that historical catalysts in the past have either matched or surpassed the impact of Bitcoin ETFs on absorbing significant portions of the BTC supply.
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