Red Alert: Record Outflows Shake Ark's Bitcoin ETF

Meanwhile, spot bitcoin ETFs in the U.S. saw net inflows for the 13th straight day, with $48.71 million pouring in after Wednesday's total of $65.26 million. This was clearly seen in yesterday's big inflows to two bitcoin funds at Fidelity and Ark Invest and 21Shares (major flows there).

Relating to the data from SoSoValue, FBTC from Fidelity topped the list in terms of net inflows with $119M whereas ARKB from Ark had $100.86M of net outflows. Tuesday marked the largest outflow on record for ARKB, less than two years after its debut in January.

The largest spot bitcoin fund as measured by net assets, BlackRock LLC's IBIT, posted net inflows of $2 million. As for Grayscale's GBTC, which is now the second largest, it saw zero flows. Meanwhile, BITB of Bitwise added $26 million in terms of new assets, while at the other end, Invesco and Galaxy Digital bitcoin ETF attracted $2 million in net inflows.

BTC Markets' Crypto Analyst Rachael Lucas explained to The Block: “The uncharacteristic spot bitcoin ETF flows likely reflect investor uncertainty around the Fed's rate path with key U.S. economic releases scheduled for May 31 coming up."

A stronger set of inflation figures from the U.S. or increases in July personal income and personal spending data could extinguish investor hopes for a September Fed rate cut. A more hawkish Fed would weigh on demand for risk assets like BTC and similar ETFs,“ Lucas noted.

Over $2 billion of net inflows were recorded by the U.S. spot bitcoin ETFs in the 13 days preceding this issue. That marks the funds' second-longest consecutive run of net inflows since they launched, after they posted 17 straight days of net inflows beginning in January.

Nonetheless, the overall size of inflows into the U.S. spot bitcoin ETFs has been a fraction of what was achieved at the height of March, according to data from The Block.

For contrast, Grayscale filed its amended S-1 registration statement for its ETH-based spot fund this Thursday, one day after BlackRock. That number is likely to increase, because as we reported two weeks ago, the SEC asked issuers to turn in their forms by Friday. Just tonight, AppyParking filed its disclosure signaling its intent to go public in the U. S. as well.