Grayscale's GBTC Surrenders Market Supremacy Amidst Bitcoin's Rough Week

Grayscale's GBTC is no longer the leader in daily outflows, surpassed by Ark Invest's ARKB with $88 million. Bitcoin's struggles to regain momentum, falling below $65,000, may be contributing to this shift. While Bitcoin ETFs experienced significant inflows in March, demand is waning, resulting in a decline in April.

Grayscale's GBTC Loses Dominance in Daily Outflows Amidst Bitcoin Market Volatility

New York, April 2, 2022 - Grayscale's Bitcoin Trust (GBTC), once a stalwart in the cryptocurrency market, has been surpassed in daily outflows by Ark Invest's ARKB fund, according to the latest daily update.

Despite bleeding $82 million in outflows, GBTC has now fallen behind ARKB, which recorded outflows of $88 million on April 2. This shift in investor sentiment comes amid a broader market downturn, with Bitcoin (BTC) struggling to regain momentum. Earlier today, BTC plunged to a low of $64,673, according to data from CoinGecko.

As reported by U.Today, Bitcoin exchange-traded funds (ETFs) experienced a record $111 billion in trading volume in March. However, this surge in demand is unlikely to be replicated in April due to waning interest from investors.

Despite the overall outflow trend, Bitcoin ETFs still managed to attract $38.8 million in net inflows on April 2. BlackRock's iShares Blockchain and Tech ETF (IBIT) accounted for the majority of these inflows, followed by Fidelity's Bitcoin ETF (FBTC).

Automated Trading Behind Bitcoin Crash?

Analysts have attributed Tuesday's significant drop in Bitcoin's price to automated trading protocols in Asia reacting to Bitcoin ETF data. Trading firm Arbelos Markets suggests that bots are placing orders based on scraped ETF data, potentially influencing the market.

This theory is supported by Bitcoin's strong performance in early March, when inflows into ETFs were robust. However, noted analyst Eric Balchunas has downplayed the impact of Bitcoin ETFs on the price of the cryptocurrency, arguing that larger forces are at play.

The recent volatility in the Bitcoin market has raised concerns among investors and analysts alike. As the largest cryptocurrency, Bitcoin's performance has a significant impact on the broader cryptocurrency landscape. Whether the market will stabilize in the coming days or continue its downward trajectory remains to be seen. Investors are advised to exercise caution and consider their own financial situation before making any investment decisions.