ARK Invest Sells Grayscale Bitcoin Trust Shares and Invests in Crypto-Linked Stock
ARK Invest, the investment firm led by Cathie Wood, recently sold 66,342 units of Grayscale Bitcoin Trust (GBTC) for $1.66 million. This move comes as Wood reshapes her portfolio, divesting GBTC shares while acquiring shares in a cryptocurrency-related stock. The sale of GBTC shares aligns with ARK Invest’s pattern of divesting from the trust, including approximately $2.5 million worth of sales on October 24.
In addition to selling GBTC shares, ARK Invest invested $12.4 million in a crypto-linked stock on October 28. However, the specific name of the stock was not disclosed. The firm has also been actively purchasing shares in other companies, such as Robinhood.
Crypto ETFs Gain Momentum
The recent actions by ARK Invest may be influenced by the rally in Bitcoin’s price, which surpassed $35,000 on October 28. This surge is linked to a court ruling in favor of Grayscale and the potential approval of a spot Bitcoin ETF. The U.S. Court of Appeals ruled that the SEC made an error in denying Grayscale’s application for a Bitcoin ETF. This decision has broader implications and could impact other companies interested in launching Bitcoin ETFs.
The ruling has narrowed the discount on Grayscale Bitcoin Trust shares and signaled a positive shift in the regulatory landscape for Bitcoin exchange-traded funds.
Hot Take: ARK Invest Adapts its Crypto Portfolio to Capitalize on Market Trends
ARK Invest’s recent actions demonstrate its agility in adapting its crypto portfolio to capitalize on market trends. By divesting from Grayscale Bitcoin Trust and investing in a crypto-linked stock, the firm is positioning itself to take advantage of potential growth opportunities. The rally in Bitcoin’s price and the court ruling favoring Grayscale’s Bitcoin ETF further support ARK Invest’s strategic moves. As the regulatory landscape evolves, ARK Invest continues to make calculated decisions to optimize its crypto holdings and maximize returns for its investors.
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