Cathie Wood’s Ark Invest Sells Remaining GBTC Assets
Cathie Wood’s investment firm, Ark Invest, has made the decision to sell off all its remaining assets of the Grayscale Bitcoin Trust (GBTC). This move comes as part of Ark Invest’s portfolio adjustments in anticipation of the approval of spot Bitcoin ETFs.
Proceeds Used to Purchase BITO Bitcoin Futures ETF
Half of the proceeds from the GBTC sale, totaling $100 million, were used by Ark Invest to purchase the BITO Bitcoin (BTC) futures ETF. This ETF was launched by ProShares in October 2021 and is likely being utilized as a liquidity bridge tool.
No Significant Impact on GBTC Shares
The sale of GBTC assets by Ark Invest did not have a significant impact on the value of GBTC shares. As of now, according to Nasdaq, GBTC is trading at $36.32.
Previous Sales of GBTC Shares
In December, Ark Invest had already liquidated tens of millions of dollars’ worth of GBTC shares. On December 11, they sold 395,945 shares for $12.85 million. Then, on December 18, another 809,441 shares were sold for $27.95 million from their Next Generation Internet ETF (ARKW).
Positioning for Spot Bitcoin ETF Approval
Ark Invest’s recent portfolio adjustments can be seen as a precautionary measure while awaiting the approval of spot Bitcoin ETFs. Cathie Wood had previously expressed her belief that these funds would receive approval before January 10, 2024. The introduction of spot Bitcoin ETFs is expected to be a catalyst for cryptocurrency growth, particularly with increased involvement from institutional investors.
Hot Take: Ark Invest Dumps GBTC for BITO Bitcoin ETF
Cathie Wood’s Ark Invest has made a strategic move by selling off all its remaining assets of the Grayscale Bitcoin Trust (GBTC) and using the proceeds to purchase the BITO Bitcoin futures ETF. This decision is part of Ark Invest’s preparation for the potential approval of spot Bitcoin ETFs. While the sale did not significantly impact GBTC shares, it showcases Ark Invest’s proactive approach to portfolio adjustments. Cathie Wood’s anticipation of spot Bitcoin ETF approval before January 10, 2024, highlights her belief in its potential to drive cryptocurrency growth, especially with institutional investors entering the market.
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