Cathie Wood’s Ark Invest Sells GBTC, Buys BITO
Cathie Wood’s asset management firm, Ark Invest, has sold all its remaining stocks of Grayscale Bitcoin Trust (GBTC) and used a significant portion of the funds to purchase ProShares Bitcoin Strategy ETF (BITO) stock. This move indicates that Wood is prioritizing the Bitcoin ETF space and preparing for the potential approval of a spot Bitcoin ETF.
Temporary Transition Tool
Ark Invest sold its GBTC holdings and invested around $100 million in BITO. This temporary investment in BITO serves as a liquid transition tool until ARK 21Shares Spot Bitcoin ETF and ARK Next Generation Internet ETF become available. With this move, Ark Invest has become the second largest holder of BITO.
The Resubmission of ARK 21Shares Bitcoin ETF Application
Ark Invest and 21Shares resubmitted their application for a spot Bitcoin ETF on April 25, 2023. The U.S. Securities and Exchange Commission (SEC) had previously denied several spot ETF applications, including those from 21Shares. However, the SEC’s approach towards ETFs seems to be changing after its loss in the Grayscale lawsuit.
Hot Take: Cathie Wood Strategically Adapts to the Crypto Market
Cathie Wood’s decision to sell GBTC and invest in BITO demonstrates her strategic adaptation to the evolving crypto market. By prioritizing the Bitcoin ETF space, Wood is positioning Ark Invest to capitalize on potential opportunities and navigate regulatory developments. This move also highlights her confidence in the future of cryptocurrencies and blockchain technology. As one of the most prominent figures in the investment world, Wood’s actions in the crypto space are closely watched and can influence market sentiment. Overall, her latest investment decisions reflect her proactive approach and commitment to staying ahead in the rapidly changing crypto landscape.
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