Cathie Wood’s Ark Invest has reportedly divested its entire holdings in the Grayscale Bitcoin Trust (GBTC), aligning with a recent trend of asset liquidation. In a prior move earlier this month, the asset management firm sold off nearly $45 million in GBTC shares and over $150 million in Coinbase shares.
According to insights from Bloomberg analyst Eric Balchunas, half of the proceeds from the GBTC sell-off, totaling a significant $100 million, were redirected toward the purchase of Bitcoin Futures ETF BITO. This strategic reallocation indicates a shift in investment focus within Ark Invest’s portfolio.
ARK Invest Continues to Dump Coinbase Shares
Concurrently, Ark Invest divested 148,885 Coinbase shares, amounting to a value of $27.5 million, through its ARK Next Generation Internet ETF (ARKW). These strategic maneuvers coincide with a period of heightened speculation in the market regarding the potential approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC) before the January 10, 2024, deadline.
Amidst the anticipation of potential ETF approval, industry experts are closely monitoring the performance of crypto stocks leading up to the deadline. The recent adjustments in Ark Invest’s portfolio could be interpreted as a proactive measure to position itself favorably in anticipation of a potential market shift or as a precautionary move against market corrections.
Bitcoin ETF Approval Will Bring More Institutional Funds
Cathie Wood, the founder and CEO of Ark Invest, maintains an optimistic outlook regarding the SEC’s potential approval of the spot Bitcoin ETF. Wood cites positive discussions and constructive engagements with regulatory officials as reasons for her optimism, and she envisions that approval of a spot ETF could serve as a catalyst for heightened institutional investment in Bitcoin.
In the midst of these strategic moves, Wood clarified that the recent divestment of Coinbase shares was a deliberate component of a broader portfolio adjustment strategy. As Ark Invest continues to fine-tune its holdings, industry observers eagerly await further developments in the ever-evolving landscape of cryptocurrency investments.
