The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.
According to BitMEX Research, the fund attracted $200.7 million, marking a milestone in the burgeoning bitcoin ETF market, which saw overall net inflows of $243.4 million as Bitcoin prices teased a comeback over $72,000.
This influx positions ARKB as the third bitcoin ETF to achieve such a milestone in a single day, trailing behind BlackRock’s IBIT with $323.8 million and ahead of Fidelity’s FBTC, which recorded its lowest inflow day with just $1.5 million. The record inflows into ARKB represent a major leap from its daily average since its January 11 launch, which reflects the growing investor confidence in Bitcoin despite its recent price volatility.
Other ETFs, including Valkyrie Bitcoin ETF (BRRR), Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), and VanEck Bitcoin ETF (HODL), also reported inflows, though on a smaller scale. Meanwhile, BlackRock’s data was pending at the time of reporting. Bitcoin’s price movement mirrored this influx, reaching a peak of $71,670 before slightly retracting.
Crypto analysts have pointed out the market’s fixation on short-term price fluctuations, arguing for a broader perspective on the continuous capital influx into Bitcoin ETFs as indicative of underlying market strength. Amid regulatory hurdles, especially in markets like the UK, the accessibility of Bitcoin ETFs for professional investors remains a topic of discussion, with many in the crypto community optimistic about the potential for regulatory evolution and the consequent impact on Bitcoin’s valuation.
With the U.S. Securities and Exchange Commission (SEC) preparing to make a decision on the spot Ethereum ETFs in May, excitement is building for what could be another major development in the cryptocurrency sector.
While Bitcoin’s dominance in the cryptocurrency market is unquestionable, Ethereum’s distinctive features and expanding ecosystem position it as a key player.
“We’ve all seen Bitcoin’s price soar to an all-time high over recent weeks, powered in no small part by the U.S. Securities and Exchange approval of Bitcoin ETFs and the subsequent in-flow of investment,” said Neil Roarty, analyst at investment platform Stocklytics.
“Now attention turns to Ethereum’s Ether cryptocurrency, the second largest digital asset, which is hoping to repeat the trick. Ether has risen more than 50 percent in 2024, but unlike Bitcoin, it hasn’t surpassed its 2021 high-water mark of $4,700. Word in Washington is that the SEC is looking to classify Ether as security, which could derail its hope of gaining approval for an ETF when the regulator makes its ruling in May. Such a setback will do little to shake the feeling that Ethereum will continue to play the role of Bitcoin’s bridesmaid for the foreseeable future,” Neil added.
