Crypto Update: Cathie Wood’s Views on Bitcoin ETFs, Grayscale’s Board Reshuffle and ETF Application Refiling
Crypto News – In the ever-evolving landscape of cryptocurrency, today’s developments have brought significant news impacting Bitcoin‘s valuation, blockchain technology, decentralized finance (DeFi), non-fungible tokens (NFTs), Web3, and regulatory measures within the crypto sphere.
At the forefront, ARK Invest’s CEO, Cathie Wood, anticipates a potential “sell on the news” reaction following the approval of spot Bitcoin Exchange-Traded Funds (ETFs) in the short run, despite holding a promising outlook for the long term. In parallel, notable shifts have occurred at Grayscale Investments, with the CEO and president stepping down. This leadership change coincided with Grayscale’s refiling of its application for a spot Bitcoin ETF, incorporating significant amendments.
Cathie Wood of ARK Invest points out a possible short-term downturn following the approval of spot Bitcoin ETFs. She predicts that this approval, eagerly awaited by many, might temporarily affect Bitcoin’s price. In her recent interview with Yahoo Finance on December 26, Wood noted that investors who have benefitted from the rising anticipation may choose to lock in profits upon the ETF’s approval. She described this phenomenon as “sell on the news,” a common trading strategy where investors capitalize on the price increase leading up to an anticipated event and then sell once the news breaks.
Despite this potential short-term effect, Wood emphasizes a more promising long-term impact. She foresees the Securities and Exchange Commission (SEC) greenlighting the spot Bitcoin ETF, which would significantly open doors for institutional investment in the crypto sector.
In a parallel development, Grayscale Investments, a major crypto asset manager, has announced an amended S-3 filing with the U.S. securities regulator. This move occurred simultaneously with Barry Silbert, CEO of Grayscale’s parent company, Digital Currency Group, resigning from Grayscale’s board. This event has led to speculation in the crypto market that Grayscale might have a better chance of converting its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, a decision currently pending with the SEC.
Barry Silbert’s resignation, announced on December 26, marked a significant shift in Grayscale’s management. The company revealed that Mark Shifke, CFO of Digital Currency Group, will take over as chairman of the board. Analysts, like Bloomberg’s Eric Balchunas, interpret this as Grayscale’s strategic move towards a cash creation model.
Additionally, Grayscale Investments is undergoing a significant reorganization of its board. The firm confirmed the departure of Barry Silbert and Mark Murphy, alongside the induction of Mark Shifke, Matthew Kummell, and Edward McGee, effective from January 1, 2024. This reshuffle comes at a time when Grayscale is vigorously competing for the approval of a Bitcoin spot exchange-traded fund. The company achieved a legal triumph in August when a court found the SEC’s rejection of its Bitcoin ETF application to be arbitrary and capricious, bolstering Grayscale’s position in the crypto finance arena.
%s Comment