In the recent trend of Bitcoin, there has been a pullback, and along with the situation of Grayscale’s GBTC being shorted, ARK’s ARKB has also experienced net outflows, reaching as high as $87.5 million on April 2nd, even surpassing GBTC’s $81.9 million. What exactly happened? Who is shorting? The following is an analysis by Eric Balchunas, an ETF analyst at Bloomberg.
Bitcoin ETF trading volume exceeded $100 billion in March, GBTC net outflows for the first time.
Eric Balchunas, an ETF analyst at Bloomberg, found that many people are concerned about the outflows of ARK’s Bitcoin ETF, ARKB, and he believes that this indeed reflects the greed and short-sightedness of some people in this field.
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Fund flows in and out are just part of daily life
ARKB is only the third largest Bitcoin ETF
The overall Bitcoin ETF is a team effort
Fund flows in and out are signs of product maturity
ETFs experience fund flows in and out, and this is part of life, even for Vanguard (the pioneer of ETFs). But overall, they tend to have net inflows and strong competition, which can be seen in any market category.
ARKB is only the third largest player in the Bitcoin ETF market, but it has $2.8 billion in assets within 3 months.
Balchunas pointed out that he originally expected the third-largest player to have only $500 million in assets. The overall fund inflows for Bitcoin ETFs are epic, and without ETFs, the price of Bitcoin might still be at $30,000. So, from a broader perspective, ARKB’s $87.5 million outflows are just a grain of sand.
Balchunas believes that the overall ten Bitcoin ETFs should be seen as a team, and on April 2nd, they had net inflows.
Recently, Bitcoin fell by 6%, and as usual, these sell-offs came from what you call “holder companions.” Perhaps you all need to look in the mirror to find the culprits.
Balchunas believes that everyone should be prepared for some ETFs to experience outflows. He personally is surprised that BlackRock’s IBIT and Fidelity’s FBTC haven’t experienced this yet, but eventually they will. And this is just a sign of product maturity.
Balchunas speculates that those who chose to sell at this time may have been scared by Bitcoin’s significant volatility or it could be ARKB itself taking profits, but the $87.5 million outflows are only one-third of last week’s inflows.
ARKB
Eric Balchunas
Bitcoin ETF