Bitcoin, Ethereum ETFs Record Net Inflows On Thursday As Ark Invest Rebalances Portfolio

Bitcoin BTC/USD and Ethereum ETH/USD ETF markets on Aug. 1 saw a solid day of inflows, while major player Ark Invest made strategic moves to rebalance its portfolio.

What Happened: While the overall trend for spot Bitcoin ETFs was positive, with a combined net inflow of $50.64 million, the underlying picture was more nuanced.

The Grayscale Bitcoin Trust GBTC experienced a significant outflow of $71.33 million, while its mini ETF counterpart attracted $191 million in new investments, according to data from SoSo Value.

BlackRock’s iShares Bitcoin Trust IBIT also performed well, with a net inflow of $25.90 million.

Ethereum-based ETFs followed a similar pattern, with a total net inflow of $26.75 million, data states.

The Grayscale Ethereum Trust ETHE saw outflows of $77.95 million, but this was more than offset by strong inflows into BlackRock’s ETHA ($89.65 million) and Fidelity’s FETH ($11.70 million).

In a notable move, Ark Invest, led by Cathie Wood, sold 108,751 shares of its ARKB spot Bitcoin ETF from its Next Generation Internet ETF ARKW, worth approximately $6.9 million, according to The Block.

This sale came despite the overall positive inflows into Bitcoin ETFs, with ARKB itself experiencing $22.4 million in net outflows on the same day.

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Why It Matters: Ark’s portfolio adjustments didn’t stop there.

The firm also reduced its exposure to Coinbase Inc. COIN stock, selling a total of 69,069 shares worth about $14.7 million from its ARKW and Fintech Innovation ETF (ARKF). This follows a $2.7 million sale of COIN shares the previous day.

These moves align with Ark’s investment strategy of maintaining diversification by capping individual holdings at 10% of an ETF’s portfolio.

As of Aug. 2, ARKB remained the largest holding in ARKW at 10.6% ($142.4 million), while COIN represented 6.7% ($90.4 million) of ARKW and 9.7% ($77.4 million) of ARKF.

The timing of these portfolio adjustments is particularly interesting given Coinbase’s recent Q2 earnings report, which showed a 11% decrease in revenue from Q1, partially due to falling consumer transactions amid market corrections.

IWhat’s Next: nvestors and industry watchers alike will be eager to gain further insights at Benzinga’s Future of Digital Assets event on Nov. 19, where these trends and their implications for the future of cryptocurrency investments are likely to be key topics of discussion.

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