Cathie Wood’s Ark Invest Sells off Entire GBTC Holdings, Allocates $100 Million to Bitcoin Futures ETF BITO

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Jai Pratap

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Jai Pratap

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Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

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December 27, 2023 22:56 EST

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Cathie Wood’s Ark Invest has reportedly offloaded its entire Grayscale Bitcoin Trust (GBTC) holdings, following a recent trend of divestment. Earlier this month, the asset management firm liquidated nearly $45 million in GBTC shares and over $150 million in Coinbase shares.

Bloomberg analyst Eric Balchunas revealed that half of the proceeds from the GBTC sell-off, amounting to a substantial $100 million, were used to buy Bitcoin Futures ETF BITO.

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

ARK Invest Continues to Dump Coinbase Shares

Simultaneously, Ark Invest sold 148,885 Coinbase shares, valuing $27.5 million, through its ARK Next Generation Internet ETF (ARKW). These strategic moves come at a time when market speculation is rife about the imminent approval of the spot Bitcoin ETF by the Securities and Exchange Commission (SEC) before the January 10, 2024 deadline.

As broader financial markets brace for potential ETF approval, industry experts are closely monitoring the crypto stocks’ performance in the lead-up to the deadline. Ark Invest’s recent portfolio adjustments might be viewed as a proactive measure to position itself favorably ahead of a potential market shift or as a safeguard against market corrections.

Bitcoin ETF Approval Will Bring More Institutional Funds

Cathie Wood, founder and CEO of Ark Invest, remains optimistic about the SEC’s approval of the spot Bitcoin ETF, citing encouraging discussions and positive engagements with regulatory officials. Wood believes that a spot ETF approval could catalyze increased institutional investment in Bitcoin.

Amid these strategic maneuvers, Wood clarified that the recent sell-off of Coinbase shares was part of a broader portfolio adjustment strategy. As Ark Invest continues to recalibrate its holdings, industry observers are keenly awaiting further developments in the dynamic landscape of cryptocurrency investments.