ARK sells remainder of GBTC holdings, invests $100M in Bitcoin ETF
Cathie Wood-led institutional asset management firm ARK Invest liquidated its entire remaining Grayscale Bitcoin Trust (GBTC) holdings worth $200 million on Dec. 28, revealed Bloomberg ETF analyst Eric Balchunas.
Today ARK sold its entire remaining $GBTC position (it was ARKW's biggest holding only a month ago) and used half the money $100m-ish to buy $BITO , likely as liq transition tool to keep beta to btc while it legs into $ARKW or $ARKB . End of an era. h/t @DilksJay @funwithnumberz pic.twitter.com/J1i92qcmzo
— Eric Balchunas (@EricBalchunas) December 28, 2023
The investment firm used half of the money, about $100 million, from the sale of GBTC to invest in Bitcoin Futures ETF Bito. However, ETF analysts believe it’s a temporary parking spot for the investment firm as it looks for a more liquidity-rich portfolio. Bloomberg ETF analyst Eric Balchunas said this latest investment shift by Ark has made it the second-largest Bito holder.
ARK Invest started off-loading GBTC shares in October when the Bitcoin price first hit $34,000; at the time, the investment firm sold 100,739 GBTC shares worth $2.5 million from its ARK Next Generation internet ETF (ARKW). The firm sold another 809,441 GBTC shares on Dec. 19 worth $27.9 million .
Apart from dumping the GBTC, ARK Invest also liquidated 148,885 Coinbase shares worth $27.5 million from its ARK Next Generation internet ETF (ARKW). The latest investment move by the asset management firm comes at a crucial juncture when there is intense speculation around the approval of a spot Bitcoin ETF.
Cathie Wood and Ark Invest's trade activity from today 12/27 pic.twitter.com/WrKtFlNKoD
— Ark Invest Daily (@ArkkDaily) December 28, 2023
Related: BlackRock, ARK revise Bitcoin ETF plans along SEC’s cash-only model
ETF analysts like Balchunas have given a 99% chance of approval for a Bitcoin ETF before the deadline of Jan.10, 2024. ARK Invest CEO Cathie Wood, a known Bitcoin proponent, has said that the chances of a spot Bitcoin ETF are high.
During a recent interview, Wood said that growing anticipation around the potential approval of spot Bitcoin ETFs could negatively impact the BTC price in the short term, but the long-term perspective is promising .
Magazine: SEC delays Ether ETFs, Binance settlement approved and another court loss for SBF: Hodler’s Digest, Dec. 17–23
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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