ARKB’s negative flow contrasts with the overall flow of the US spot ETFs, which logged their 13th consecutive day of combined net inflows on the same day.
On Thursday, Ark Invest’s spot Bitcoin exchange-traded fund (ETF), ARKB, saw a massive amount of net outflow. According to SosoValue data, $100 million left the fund, marking the ETF’s largest single-day outflow since it went live in January.
Interestingly, ARKB’s negative flow contrasts with the overall flow of the US spot ETFs, which logged their 13th consecutive day of combined net inflows on the same day. The ETFs drew in $48.71 million in what ended up as a day of mixed flows.
For context, just as Ark’s ARKB saw nearly $100 million, Fidelity’s FBTC led net inflows with $119 million. The varied movements continued with Bitwise’s BITB adding $26 million, while BlackRock’s IBIT saw a modest net inflow of $2 million. Like IBIT, the Invesco and Galaxy Digital Bitcoin ETF also saw $2 million in net inflows. However, Grayscale’s GBTC, which recently became the second largest Bitcoin ETF in terms of net assets, recorded zero flows.
Investor Uncertainty and Economic Reports Driving Significant ARKB ETF Movement
Thursday brought about significant flows for ARKB and other ETFs. However, the movements are not unrelated to the state of investor uncertainty, which appears to be heightened at the moment. For what it’s worth, market participants are preparing themselves for key economic reports and possible changes in Federal Reserve policies.
This sentiment has been echoed by Rachael Lucas, a crypto analyst at BTC Markets. Lucas believes that the unusual ETF flows being experienced is a result of growing investor concern over the Fed’s next decision regarding interest rate. She says that a rate cut in September will only happen if and only if inflation numbers do not exceed expectations and personal income and spending trends do not rise. Anything other than this, expectations are that the Fed may take a hawkish approach. Her part statement reads:
“A more hawkish Fed stance could adversely impact demand for riskier assets like Bitcoin and related ETFs.”
The broader landscape of US spot Bitcoin ETFs remain as volatile as ever. Over the past 13 days, the funds have collectively seen over $2 billion in net inflows.
Notably, these are good signs, being that it is the second-longest streak of positive inflows for these funds. That is, after the 17-day run that happened in January. Despite this impressive recent run, however, the overall volume of flows remains significantly below their peak levels seen in March. This reality has once again highlighted the volatile nature of the crypto market.
Without a doubt, the record outflows from ARKB and the mixed performance of other Bitcoin ETFs are reminders of the sensitivity of the crypto market to economic indicators and central bank policies. So, while the market awaits the upcoming US inflation and personal spending reports, ETF flows are likely to remain volatile.
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