Cathie Wood’s Ark21 Shares Bitcoin ETF Shatters Records with Historic Inflows as Bitcoin Touches $72 K

2024-04-10, 02:31

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## [TL; DR]
On 29 March Cathie Wood’s Ark BTC ETF had a daily inflow of over $200 million.

A crypto analyst predicts that <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> will surpass $80,000 in the near future.

Valkyrie Bitcoin ETF, Invesco Galaxy Bitcoin ETF, the Franklin Bitcoin ETF and the VanEck Bitcoin ETF had decent capital inflows on 29 March.

## Introduction
The capital inflows into spot bitcoin ETFs continue to support a bitcoin bullish market. Although the ETF funds generate inflows at different dates their cumulative effect on the crypto market is significant. Since their introduction bitcoin has been relatively bullish pulling with it other cryptocurrencies.

Today, we look at the recent capital inflows into Cathie Wood’s ARK 21 Shares Bitcoin ETF. We will also analyze the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin price</a> movement during that period.

## Bitcoin Price Retest $72K
On 27 March the ARK 21Shares Bitcoin ETF had a fourfold average daily capital inflow, surpassing the previous day’s daily inflow record, which influenced the price of bitcoin to rise towards the $72K mark. Although the bitcoin ETF used to register an average daily inflow of around $43.9 million, on 27 March it notched $201.8 million in inflows. Within the same period the bitcoin price edged closer to $72K, a week after it dropped below $63,000.

Compared to the previous day the ARK 21Shares Bitcoin ETF inflows almost tripled since it recorded a $73K inflow on 26 March. Such a surge in inflows signifies a rise in investor [interest in spot bitcoin ETFs](https://www.gate.io/learn/articles/what-is-a-bitcoin-etf/218 "interest in spot bitcoin ETFs").

Farside investors data shows that the ARK 21Shares (ARKB) Bitcoin ETF's daily inflow was five times  greater than its daily average of $43,900. With this milestone, ARKB became the third ETF fund to record more than $200,900 million in a single day after BlackRock's IBIT and Fidelity's FBTC achieved that feat.

Although the ARK 21Shares Bitcoin ETF had the highest inflows for the day the other BTC ETFs also recorded notable inflows. For example, Valkyrie Bitcoin ETF (BRRR) had an inflow of $5.1 million, the Invesco Galaxy Bitcoin ETF (BTCO) $4.8 million, the Franklin Bitcoin ETF (EZBC) $4 million and the VanEck Bitcoin ETF (HODL) $1.9 million.

On the other hand, WisdomTree Bitcoin ETF (BTCW) and Fidelity Investments Bitcoin ETF (FBTC) had inflows of about $1.5 million each.

Read also: [These Are the High-Profile Spot Bitcoin ETF Applications](https://www.gate.io/learn/articles/these-are-the-high-profile-spot-bitcoin-etf-applications-currently-in-pllay/1258 "These Are the High-Profile Spot Bitcoin ETF Applications")

## Bitcoin Price Movement Leading up to and During the Record Inflow
It is most likely that the [capital inflows into the BTC ETFs](https://www.gate.io/blog_detail/3839/bitcoin-etf-inflows "capital inflows into the BTC ETFs") had an impact on bitcoin price movement. During the same period the bitcoin price reached $71,670 before plummeting to below $69,000.

Some analysts have attributed the recent poor bitcoin price performance to the legal battles between the United States exchange Coinbase and the US Securities and Exchange Commission (SEC). That comment came after bitcoin's price fell below $69,000. However, that development had a short term effect on the BTC price.

Despite the recent bitcoin price dip, Daan Crypto,a crypto trader and analyst gave a bitcoin <a href="/price-prediction" target="_blank" class="blog_inner_link">price prediction</a> of $80k. He believed that the brief bitcoin price fall may be a precursor of a strong rally to follow. In respect of this, [he said](https://twitter.com/DaanCrypto/status/1773311825049698373/photo/1 "he said"), “Break all time high and low $80Ks should follow shortly afterwards I think.”

In the meantime several crypto commentators have pointed out that many cryptocurrency investors are focusing on the short term bitcoin price movement rather than the long-term one. Such analysts have advised the investors to focus on the broader perspective.

As an example, on 28 March [Gumshoe](https://twitter.com/0xGumshoe/status/1773120881314742545 "Gumshoe"),a popular crypto researcher, told his followers on X that most  investors are micro perspective centric since they make most of their bitcoin investment decisions based on its daily price moves.

Instead, he emphasized that they should make their decisions based on funds <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> into the bitcoin market. Concerning this, he said, “Bitcoin ETFs seeing ATH inflows and people are panicking over the daily close of a candle.”

Another crypto commentator, [Matt Hougan](https://twitter.com/Matt_Hougan/status/1772704864872583205 "Matt Hougan"), chief investment officer of Bitwise, raised a problem that is affecting the bitcoin sector at the moment. He said that many crypto investors in several countries like the United Kingdom are unable to buy BTC ETFs due to regulatory concerns.

[He stated](https://twitter.com/Matt_Hougan/status/1772704864872583205 "He stated"), “The truth is, most professional investors still cannot <a href="/how-to-buy/bitcoin-btc" target="_blank" class="blog_inner_link">buy Bitcoin</a> ETFs. That will change through a series of 100+ individual due diligence processes over the next two years.”

## Bitcoin ETFs and Inflows for Context
During the first quarter of the year the spot bitcoin ETFs in the United States had over $12.1 billion total inflows. Blackrock's IBIT recorded the highest inflow of over $13.9 billion. On the contrary, GBTC had $14.7 billion in outflows due to its relatively high fees. The following table summarizes [capital inflows in spot BTC ETFS](https://www.gate.io/learn/articles/how-to-continue-and-profit-in-the-ever-changing-cryptocurrency-market/966 "capital inflows in spot BTC ETFS") in the United States. 
![](https://gimg2.gateimg.com/image/article/1712716201BM4aLpgChF.jpg)
Spot Bitcoin inflows During First Quarter 2024 - Investopedia

As observed from the table, Fidelity Wise Origin Bitcoin Trust had the second largest inflow of $7.5 billion, followed by ARK 21 Shares Bitcoin ETF with $2.3 billion. Only Grayscale Bitcoin Trust and Hashdex Bitcoin Fund recorded net outflows.

During that period the bitcoin market trend was mostly positive due to the influence of bitcoin ETF accessibility in the United States and the resultant inflows. The BTC ETFs are one of the most successful bitcoin investment products that positively impacted the cryptocurrency market during the first quarter.

## Conclusion
On 28 March Cathie Wood’s ARK21 Shares Bitcoin ETF had an inflow of more than $200 million which surpassed its average daily inflows of about $43.9 million. It became the third BTC ETF to register such a high daily inflow. Nonetheless, on the same day other BTC ETFs like Valkyrie Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF and VanEck Bitcoin ETF had decent inflows as well.

## FAQs about Spot Bitcoin ETFs
### Which ETF is best for bitcoin?
Based on the performance of the spot bitcoin ETFs during the first quarter of 2024 Blackrock's IBIT is the best spot bitcoin ETF since it had $13.9 billion in inflows. However, Fidelity Wise Origin Bitcoin Trust and ARK 21 Shares Bitcoin ETF also performed well during the period raking in $7.5 billion and $2.3 billion respectively.
### Is Cathie Wood invested in bitcoin?
Cathie Wood has invested much in spot bitcoin ETFs since she owns The ARK 21Shares Bitcoin ETF, the second largest ETF fund in the United States. Wood is one person who believes that bitcoin is a worthwhile investment asset.
### Is there an approved bitcoin ETF?
There are 11 approved spot bitcoin ETFs in the United States alone. Cathie Wood’s ARK21 Shares Bitcoin ETF, Blackrock's IBIT, Valkyrie Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF and the VanEck Bitcoin ETF are examples of the BTC ETFs in the U.S.
### Does ARKB have bitcoin?
ARKB owns bitcoin that backs its ETF shares. During the first quarter of 2024 ARKB had $7.5 billion total inflows and seems to attract many investors.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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