US BTC ETFs hit 3-week outflow peak as Ark Invest sells

• US spot bitcoin ETFs recorded $171.2 million in net outflows on Thursday, marking the highest single-day withdrawal in three weeks.
• BlackRock's IBIT led the outflows with $41.9 million, followed by significant withdrawals from funds managed by Fidelity, Bitwise, and Ark Invest.
• Ark Invest reduced its position in its own bitcoin ETF by $11.2 million as part of a broader strategic rebalancing of its portfolio.

Significant Outflows in Bitcoin and Ethereum ETFs

The US cryptocurrency investment landscape saw a sharp contraction on Thursday as seven spot bitcoin ETFs experienced a combined net outflow of $171.2 million. This represents the largest daily exit of capital since March 6. While BlackRock's IBIT saw the most substantial reduction at $41.9 million, other major players including Fidelity, Bitwise, and Ark Invest each reported outflows exceeding $30 million.

The downward trend extended to the Ethereum market as well. Spot Ethereum ETFs recorded $92.5 million in net outflows, continuing a negative streak that has lasted for seven consecutive days. This marks the longest period of sustained outflows for Ethereum funds since December of last year.

Market Sentiment and Macroeconomic Factors

Analysts suggest the recent movement of capital is not necessarily a signal of fading long-term interest in digital assets. Nick Ruck, Research Director at LVRG, characterized the $171 million outflow as a combination of short-term profit-taking and hedging against global volatility. He noted that institutional sentiment remains tied to macroeconomic pressures, including geopolitical tensions between the US and Iran and concerns regarding global oil supplies.

Despite the immediate sell-off, institutional interest in tokenized traditional assets and bitcoin remains resilient. The current trend is viewed as a rotation of capital rather than a fundamental shift in conviction regarding the underlying technology.

Ark Invest Strategic Rebalancing

In a notable move, Cathie Wood’s Ark Invest sold 495,000 shares of its own Ark & 21Shares bitcoin ETF (ARKB), valued at approximately $11.2 million. This divestment was accompanied by the sale of $6.7 million in Bullish shares and $5.1 million in Block Inc., alongside reductions in major technology holdings like Alphabet, Nvidia, and Meta.

This activity aligns with Ark Invest's internal policy of active portfolio management. The firm generally maintains a 10% cap on individual holdings within its funds. When market price fluctuations cause a position to exceed this threshold, the firm triggers a sale to maintain diversification and manage risk exposure across its actively managed portfolios.