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

Dec 28, 2023 - 13:51
Dec 28, 2023 - 13:51
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ARK divests remaining GBTC shares, reallocates $100M to Bitcoin ETF investment.
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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

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.