Cathie Wood's ARK Liquidates All GBTC Holdings, Invests $100M in Bitcoin Futures ETF

Cathie Wood’s ARK Invest Sells GBTC Shares and Buys BITO

According to Bloomberg Intelligence, ARK Invest has sold off its remaining holdings of Grayscale Bitcoin Trust (GBTC) shares, worth around $200 million, and used $100 million of the proceeds to purchase shares in the ProShares Bitcoin Strategy ETF (BITO). This move makes ARK Invest the second-largest holder of the Bitcoin futures ETF.

ARK Invest’s Transition into BITO

Bloomberg Intelligence analyst Eric Balchunas suggested that ARK Invest’s decision to buy BITO was likely a liquidity transition tool as it moves towards its Next Generation Internet ETF (ARKW) or proposed spot Bitcoin ETF (ARKB). ARKW is the ticker for ARK’s Next Generation Internet ETF, while ARKB is the proposed ticker for its spot Bitcoin ETF.

Reshuffling of Portfolio as Bitcoin ETF Approval Speculation Grows

ARK Invest’s reshuffling of its portfolio comes amidst speculation about the approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). The SEC has rejected all previous spot Bitcoin ETF applications but has been holding meetings with applicants in recent months. The entry of BlackRock into the race and a court ruling ordering the SEC to review Grayscale’s application have added to the anticipation. With a potential window for multiple approvals in January, hopefuls are rushing to finalize their applications.

Barry Silbert Steps Down as Grayscale Chairman

Last week, Barry Silbert resigned as chairman of Grayscale Investments, leading to speculation that this move could be clearing the way for the firm’s ETF aspirations.

Hot Take: ARK Invest Makes Strategic Moves Ahead of Potential Bitcoin ETF Approvals

ARK Invest’s decision to sell off GBTC shares and purchase BITO reflects its anticipation of potential Bitcoin ETF approvals. By reshuffling its portfolio, ARK Invest positions itself as a major player in the Bitcoin futures ETF market while also preparing for its Next Generation Internet ETF and spot Bitcoin ETF. As the race for Bitcoin ETF approval heats up, ARK Invest is strategically positioning itself for success.