BTC Spot ETFs See $277M Outflow, ARKB and GBTC Hit Hardest

• Bitcoin spot ETFs recorded a $277M net outflow from August 26 to August 30.
• ARKB saw the largest outflow among Bitcoin ETFs, losing $220M in investor funds.
• Grayscale’s GBTC fund faced a $119M outflow, showing investor watchfulness in the crypto market.

During the last week of August, Bitcoin spot Exchange-Traded Funds (ETFs) recorded a marked net outflow totaling $277 million. This withdrawal between August 26 and August 30  showed changing investor sentiment and market dynamics in the cryptocurrency sector during that period.

Data from SosoValue has shown massive outflows and recovery movements with this large withdrawal, suggesting a notable shift in investor behavior, with many deciding to withdraw from the fund despite its management technique. 

Source: SosoValue

ARKB ETF Leads Outflows Among Bitcoin Funds

The Bitcoin spot ETF that experienced the most considerable net outflow last week was the ARKB fund, managed by Ark Invest in collaboration with 21Shares. ARKB saw a significant weekly outflow of $220 million, making it the hardest-hit ETF in the cryptocurrency space. 

As of August 30, 2024, ARKB reported a one-day net outflow of $65.05 million, adding to the cumulative outflow. Despite these daily losses, ARKB has managed to maintain a cumulative net inflow of $2.31 billion since its inception.

Source: SosoValue

Grayscale’s GBTC Fund Faces Similar Challenges

GBTC, another prominent player in the Bitcoin ETF market, also encountered notable outflows. GBTC recorded a net outflow of $119 million during the same week. Grayscale’s GBTC has long been a major drive for Bitcoin investment, but this recent outflow points to possible changes in investor strategies in response to current market conditions.

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Source: SosoValue

As of 30 August, GBTC reported a daily trading volume of 3.18 million shares, totaling $148.58 million.

Market Trends and Investor Behavior

Last week, The net outflow of $277 million from Bitcoin spot ETFs indicated that investors may reconsider their positions in cryptocurrency-related funds. The large outflows from ARKB and GBTC, two of the major Bitcoin ETFs, highlight a period of market adjustment. These movements could reflect broader trends in the cryptocurrency investment landscape, signalling either a temporary reaction to market volatility or the beginning of a longer-term shift in investor strategies.