Cathie Wood’s ARK Next Generation Internet ETF (ARKW) has been selling shares of Grayscale Bitcoin Trust (GBTC) and Coinbase (COIN). The sales started in mid-August and have been accelerating recently.
According to CathiesArk.com, an unofficial but reliable source, the number of GBTC shares held by ARKW has been decreasing over time. The peak was reached in July 2021 when they held over 9 million shares. Since then, they have been selling and currently hold around 4.89 million shares.
The situation with COIN shares is different. The all-time high was reached in July 2023 with 1.7 million shares. They have been reducing their exposure since then and currently hold around 1.36 million shares.
ARKW currently holds 10.5% of its assets in GBTC shares and just over 9% in COIN shares. GBTC remains the main asset in the ETF’s basket, followed by COIN and ROKU.
There are speculations that ARK Invest is taking advantage of the bullish sentiment to rebalance its portfolio by selling GBTC shares and increasing exposure to Coinbase and Robinhood shares. The recent decrease in the discount to NAV of GBTC has made it logical for the fund to sell these shares and rebalance its distribution percentages.
Overall, the sales of GBTC and COIN shares by ARKW are part of a strategic portfolio rebalancing move by ARK Invest.
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