Report: Cathie Wood's ARK Invest Fund Sells Grayscale Bitcoin Trust (GBTC) Shares Prior to Imminent ETF Verdict

An ETF Managed by ARK Invest Sells Grayscale Bitcoin Trust (GBTC) Shares

Cathie Wood’s ARK Invest has reportedly sold all of its holdings in Grayscale’s Bitcoin trust product, according to Bloomberg. The ARK Next Generation Internet ETF unloaded its remaining 2.25 million shares of the Grayscale Bitcoin Trust (GBTC) on Wednesday. On the same day, the fund also acquired 4.32 million shares of the ProShares Bitcoin Strategy ETF for exposure to BTC futures.

Optimism Surrounding SEC Approval for US Spot Bitcoin ETF

The move comes as there is optimism that the US Securities and Exchange Commission (SEC) will finally approve the first US spot Bitcoin ETF on January 10th. Previously, the SEC rejected Grayscale’s bid to convert GBTC into a spot Bitcoin ETF, leading the company to file a lawsuit. A federal judge ruled in August that the application should be reconsidered by the SEC to avoid arbitrariness and inconsistency.

ARK Invest’s Cautionary Move

ARK Next Generation Internet ETF decided to sell its GBTC holdings “out of an abundance of caution” in case the SEC denies the trust’s conversion to a spot market BTC ETF. Cathie Wood stated that they are unsure which applications will be approved and if they meet all the criteria set by the SEC.

Implications of a Spot-Based Bitcoin ETF Approval

The approval of a spot-based Bitcoin ETF would open doors for investors in the $30 trillion advised market to gain exposure to BTC. This development could have significant implications for the cryptocurrency industry.

Hot Take

Cathie Wood’s ARK Invest Fund has made a strategic move by selling its Grayscale Bitcoin Trust (GBTC) shares and acquiring shares of the ProShares Bitcoin Strategy ETF. With the looming decision on the first US spot Bitcoin ETF, ARK Invest is exercising caution and positioning itself for potential outcomes. The approval of a spot-based Bitcoin ETF would be a game-changer for the cryptocurrency industry, opening up new opportunities for investors. While uncertainty remains, Wood remains optimistic about Bitcoin’s future.