The recent retracement of Bitcoin’s trend has supported the Bitcoin spot ETF’s brilliant performance in the first quarter of this year. In addition to seeing grayscale GBTC being dumped, Ark’s ARKB also experienced a net outflow, and in 4 /2 The net outflow reached US$87.5 million, even surpassing GBTC’s US$81.9 million. What happened? Who is dumping goods? Here's an analysis from Bloomberg ETF analyst Eric Balchunas.

(Bitcoin ETF trading volume exceeded 100 billion US dollars in March, and GBTC net outflow gave way for the first time)

Bloomberg ETF analyst Eric Balchunas has seen a lot of concern about outflows from ARK Bitcoin spot ETF ARKB, which he believes does demonstrate the greedy and short-sighted nature of some in the space.

Capital outflows and inflows are just part of daily life

ETFs experience outflows, it's a part of life, even from Vanguard (the granddaddy of ETFs, Vanguard Group). But overall, they tend to be net inflows and strong competitors, which can be seen in markets in any category.

ARKB is just the third largest Bitcoin spot ETF

ARKB is only the third largest in the market for Bitcoin spot ETFs, but has $2.8 billion in assets in 3 months.

Balchunas noted that he originally expected the third largest to be only $500 million. The overall inflow into the Bitcoin spot ETF is epic, and without the ETF, the price of Bitcoin might still be stuck at $30,000. So in the grand scheme of things, Ark's $87.5 million outflow is just a grain of sand.

The Overall Bitcoin Spot ETF Is a Team

Balchunas believes that the entire ten Bitcoin ETFs should be regarded as a team, and 4/2 as a whole are showing net inflows.

Bitcoin is down 6% recently, and as usual, these selloffs are coming from your so-called fellow holders. I'm afraid you all need to look in the mirror to find the culprit.

Capital outflows and inflows are just a sign of product maturity

Balchunas thinks everyone should be prepared to see outflows from some of these ETFs moving forward. He's personally surprised that this hasn't happened yet with BlackRock's IBIT and Fidelity's FBTC, but eventually they will. And this is just a sign of product maturity.

Balchunas speculated that those who chose to sell at this time may have been spooked by Bitcoin's large fluctuations, or it may have been profit-taking by Ark itself, but the $87.5 million outflow was only 1/3 of its inflow last week.

Seeing some of CT up in arms over $ARKB having an outflow day, which really shows the greedy and short-sighted nature of some of the folks in this space tbh. Pls let me offer some perspective:1. ETFs see outflows, even Vanguard's, it's part of life, but overall they tend to be… https://t.co/hnFQUy3BaY

— Eric Balchunas (@EricBalchunas) April 3, 2024

This article Bloomberg Analyst Looks at Ark Bitcoin ETF ARKB Fund Outflows: Just an Everyday Event that Will Happen First appeared on Chain News ABMedia.