ARK divests remaining GBTC shares, reallocates $100M to Bitcoin ETF investment.
ARK Invest, divests its $200 million worth of Grayscale Bitcoin Trust (GBTC) holdings and redirects $100 million towards Bitcoin Futures ETF
The asset management company ARK Invest, led by Cathie Wood, has sold off its entire holdings in the Grayscale Bitcoin Trust (GBTC), valued at approximately $200 million, as reported by Bloomberg ETF analyst Eric Balchunas.
From the proceeds of this sale, ARK Invest allocated roughly $100 million to invest in the Bitcoin Futures ETF, Bito, suggesting a strategic shift in investment. Analysts, including Eric Balchunas from Bloomberg, view this move as a temporary strategy by ARK Invest as it seeks a portfolio with greater liquidity. This recent investment has positioned ARK as the second-largest stakeholder in Bito.
ARK Invest began reducing its GBTC shares back in October, coinciding with Bitcoin's surge to $34,000, by selling a significant portion from its ARK Next Generation Internet ETF (ARKW). The firm continued this trend with a substantial sale of GBTC shares on December 19.
Furthermore, ARK Invest also sold a large number of shares from Coinbase, worth millions, from the same ARKW fund. This decision comes at a time of heightened speculation about the potential approval of a spot Bitcoin ETF.
ETF experts like Balchunas have predicted a high likelihood of a Bitcoin ETF being approved soon. Cathie Wood, the CEO of ARK Invest and a vocal supporter of Bitcoin, has expressed optimism about the prospects of a spot Bitcoin ETF, suggesting that while there may be short-term effects on Bitcoin's price, the long-term outlook remains positive
