ARK Invest Divests $200M in Grayscale Bitcoin Trust, Focuses on Bitcoin Futures ETF
Summary:
Institutional asset management firm ARK Invest has divested its entire remaining investment in Grayscale Bitcoin Trust (GBTC), valued at $200 million. The firm used half of the proceeds to invest in Bitcoin Futures ETF Bito. ARK initially started to sell GBTC shares in October when Bitcoin prices hit $34,000, and it also recently liquidated shares of Coinbase. The move comes amid escalating speculation about the potential approval of a spot Bitcoin ETF.
Institutional asset management firm ARK Invest, directed by Cathie Wood, has divested its entire remaining investment in Grayscale Bitcoin Trust (GBTC), valued at $200 million, according to Bloomberg ETF analyst Eric Balchunas on Dec. 28. Around $100 million from the GBTC sale, which is half the total amount, was further allocated for investment in Bitcoin Futures ETF Bito. Nonetheless, ETF experts suggest this to be a transitory placement as ARK seeks to diversify into a portfolio with greater liquidity, marking the firm as Bito's second-largest holder.
ARK Invest commenced shedding GBTC shares back in October when Bitcoin prices soared to $34,000 for the first time. During this period, ARK divested 100,739 GBTC shares totally valued at $2.5 million from its ARK Next Generation internet ETF (ARKW). An additional 809,441 GBTC shares were subsequently sold on Dec. 19, valued at $27.9 million.
ARK didn't just sell off the GBTC, it also cleared 148,885 shares of Coinbase, valued at $27.5 million from its ARK Next Generation internet ETF (ARKW). These key investment activities are taking place amidst rising speculation concerning the approval for a spot Bitcoin ETF.
ETF analysts, including Balchunas, estimate a 99% likelihood of a Bitcoin ETF being approved prior to the Jan.10, 2024 deadline. Cathie Wood, the CEO of ARK Invest and a committed Bitcoin supporter, has also forecast a high likelihood of a spot Bitcoin ETF approval. In a recent discourse, Wood stated that the heightened expectations of a spot Bitcoin ETF's authorization may lead to a short-term dip in BTC price, while presenting promising long-term prospects.
Published At
12/28/2023 12:38:10 PM
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