Cathie Wood Remains Optimistic Despite Selling GBTC Shares

ARK Invest Sells GBTC Shares and Acquires Bitcoin ETFs

ARK Invest, the investment firm led by Cathie Wood, has sold 2.25 million shares from the Grayscale Bitcoin Trust (GBTC) while acquiring 4.32 million shares of the ProShares Bitcoin Strategy ETF (BITO) and 20,000 shares of the ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA).

Reason for Selling GBTC Shares

Cathie Wood stated that the sale of GBTC shares was done as a precautionary measure due to concerns that the US Securities and Exchange Commission (SEC) may not approve the ARK 21Shares Bitcoin ETF in January 2024. The narrowing of the discount between GBTC shares and the underlying Bitcoin value made the sale profitable.

Grayscale’s Victory Narrows NAV Discount

In June, Grayscale’s closed-ended Bitcoin Trust was trading at a 40% discount to its net asset value (NAV). However, optimism surrounding the approval of spot Bitcoin ETFs has narrowed the discount to around 7%.

Cathie Wood Affirms Optimism in Bitcoin

Cathie Wood clarified that selling GBTC shares does not indicate a loss of faith in Bitcoin. She stated, “We’re as optimistic about Bitcoin as we’ve ever been.”

Wood’s Focus on Bitcoin Futures

In an interview earlier this year, Cathie Wood expressed her belief that Bitcoin would outperform crypto-related stocks in the long term. ARK is now looking into products investing in Bitcoin futures, Ethereum futures, and companies involved in Bitcoin investments.

Hot Take: ARK Invest Adjusts Portfolio with BTC ETFs and Sells GBTC Shares

ARK Invest has made strategic moves by selling GBTC shares and acquiring Bitcoin ETFs. This decision was driven by concerns about the SEC’s approval of ARK’s Bitcoin ETF. Despite this, Cathie Wood remains optimistic about Bitcoin’s future. Grayscale’s victory has also narrowed the discount between GBTC shares and its net asset value. Wood’s focus on Bitcoin futures reflects her confidence in its long-term performance. Overall, ARK Invest is actively adjusting its portfolio to align with its investment strategies in the crypto space.