ARK Exits GBTC Position, Commits 100 Million Dollars to Bitcoin ETF Investment

Crypto News- Under the leadership of Cathie Wood, ARK Invest successfully concluded the divestment of its entire remaining holdings in the Grayscale Bitcoin Trust (GBTC), totaling $200 million. This strategic move was unveiled by Bloomberg ETF analyst Eric Balchunas on December 28.

Subsequently, the investment firm reallocated approximately $100 million from the proceeds of the GBTC sale into the Bitcoin Futures ETF, Bito. Analysts specializing in exchange-traded funds view this shift as a provisional maneuver, speculating that ARK Invest is in pursuit of a more fluid and resilient portfolio. Eric Balchunas, reporting for Bloomberg, highlighted that this tactical adjustment has positioned ARK as the second-largest holder of Bito.

ARK Exits GBTC Position, Commits 100 Million Dollars to Bitcoin ETF Investment

ARK Invest commenced the sell-off of GBTC shares back in October when the price of Bitcoin breached $34,000. In the initial sale, the firm shed 100,739 GBTC shares valued at $2.5 million from its ARK Next Generation Internet ETF (ARKW). Another substantial transaction unfolded on December 19, involving the liquidation of 809,441 GBTC shares worth $27.9 million.

In addition to parting ways with GBTC, ARK Invest also offloaded 148,885 Coinbase shares, amounting to $27.5 million, from its ARK Next Generation Internet ETF (ARKW). This strategic maneuver by the asset management firm aligns with a critical juncture in the industry, characterized by heightened speculation surrounding the potential approval of a spot Bitcoin ETF.

ETF analysts, including Balchunas, have assigned a 99% probability of a Bitcoin ETF gaining approval by the January 10, 2024 deadline. Cathie Wood, the CEO of ARK Invest and a vocal proponent of Bitcoin, has expressed confidence in the likelihood of approval for a spot Bitcoin ETF.

During a recent interview, Wood acknowledged the potential short-term impact on BTC prices as a result of the growing anticipation surrounding the approval of a spot Bitcoin ETF. Nevertheless, she maintains an optimistic outlook on the long-term prospects for Bitcoin, underscoring the positive trajectory of the market despite any transient fluctuations.