Ark Investment Management Sells Off Grayscale Bitcoin Trust Holdings
In preparation for the upcoming deadline for Bitcoin Spot ETF applications, Ark Investment Management, led by Cathie Wood, has sold its entire holdings of Grayscale Bitcoin Trust (GBTC).
A Shift in Ark Invest’s Bitcoin Investment Strategy
Bloomberg Intelligence ETF analyst Eric Balchunas recently reported that Ark Invest made this strategic move just one month after GBTC became the largest holding in their portfolio.
The reason behind Ark Invest’s decision to sell off GBTC may be their anticipation of the approval of a Bitcoin Spot Exchange-Traded Fund (ETF) before the January 10, 2024 deadline.
As part of this shift, Ark Invest used $100 million to purchase BITO, the ProShares Bitcoin Strategy ETF introduced in October 2021. This move signifies a significant change in their investment approach.
According to Balchunas, this shift to BITO is likely a temporary transition tool to maintain beta for Bitcoin before the launch of ARK Next Generation Internet ETF ($ARKW) and ARK 21Shares Bitcoin spot ETF ($ARKB).
Grayscale’s Adjustments to BTC Spot ETF Filing
Grayscale, a major asset management company, has submitted an updated S-3 filing for its Bitcoin spot ETF. The filing indicates that Grayscale will now only accept cash orders for its ETF investments.
This adjustment was made by Grayscale to maintain its position as a leader in the BTC spot ETF race.
Hot Take: Preparing for the Bitcoin Spot ETF Approval
With the deadline for Bitcoin Spot ETF applications approaching, it seems that Ark Investment Management is taking strategic steps to position themselves for potential approval. By selling off their GBTC holdings and investing in BITO, they are adapting their investment strategy to align with the changing landscape of cryptocurrency ETFs. This move demonstrates Ark Invest’s commitment to optimizing their investment approach and providing potential benefits for their investors. Additionally, Grayscale’s adjustment to its BTC Spot ETF filing shows their determination to stay ahead in the race for a Bitcoin ETF. These developments indicate the growing importance and anticipation surrounding the approval of a Bitcoin Spot ETF.
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