Cathie Wood’s ARK Invest Waves Goodbye to Grayscale in $200 Million Exit
The post Cathie Wood’s ARK Invest Waves Goodbye to Grayscale in $200 Million Exit appeared on BitcoinEthereumNews.com.
ARK Invest – the institutional asset management firm led by Cathie Wood – made a significant move by liquidating all of its remaining holdings in the Grayscale Bitcoin Trust (GBTC), totaling $200 million. In the previous month, GBTC stood as the largest holding in ARK’s Next Generation Internet ETF. However, the asset management firm has now completely exited this position. The adjustment in the portfolio comes ahead of the anticipated decision by the Securities and Exchange Commission (SEC) next month regarding the approval of trading spot Bitcoin ETFs in the United States. Bitcoin Futures ETF: ‘Temporary Parking Spot’ for ARK? Bloomberg ETF analyst Eric Balchunas revealed that ARK Invest used half of the proceeds, approximately $100 million, to invest in the ProShares Bitcoin Strategy ETF (BITO). However, the analyst speculated that this move is a temporary one, serving as a strategic pause while the Florida-based fund manager seeks a more liquidity-rich portfolio. According to Balchunas, ARK appears to be using the futures Bitcoin ETF as a “temporary parking spot” while preparing to launch its own spot Bitcoin ETF next year, pending approval from the SEC. 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 This decision to completely dump Grayscale holdings follows ARK Invest’s gradual divestment, which started in October when Bitcoin reached $34,000. At that time, the investment firm sold 100,739 GBTC shares worth $2.5 million from its ARK Next Generation Internet ETF (ARKW). In a more recent transaction on December 19, ARK Invest offloaded an additional 809,441 GBTC shares,…
Filed under: News - @ December 29, 2023 2:22 am