Ark Invest, led by Bitcoin bull Cathie Wood, has recently sold off Grayscale Trust (GBTC) shares worth around $3.8 million while purchasing $5.6 million in Block shares. The trading activity indicates that Ark’s Next Generation Internet fund (ARKW) sold 139,506 GBTC shares and bought 113,326 shares of Block, Inc., adding them to ARK Innovation ETF (ARKK), ARKW fund, and Ark Fintech Innovation ETF (ARKF).
Recent Sales and Holdings
This is the second time Ark Invest has sold Grayscale shares in recent weeks. On October 24, the firm offloaded almost $5.8 million in Coinbase and GBTC shares following a surge in Bitcoin prices. As of today, GBTC is priced at $26.75 per share, representing a 0.74% dip since yesterday. Ark is currently the second-largest holder of GBTC shares and also holds a significant position in Coinbase stock.
Block’s Profile and Recent Performance
Block is a Bitcoin-focused payments company founded by ex-Twitter CEO Jack Dorsey. The company, formerly known as Square, owns the popular mobile app Cash App, which facilitates Bitcoin transactions. Recently, Block reported better-than-expected Q3 earnings, with a net revenue of $5.62 billion—up 24% year-over-year.
ETF Application and Regulatory Approval
Ark Invest is among several high-profile investment firms seeking approval from the Securities and Exchange Commission for a spot Bitcoin exchange-traded fund (ETF). Although the firm’s Ark21Shares ETF application was filed in June 2021, it has been rejected thus far.
Hot Take: Ark Invest Diversifies Crypto Holdings
Ark Invest’s recent trading activity reflects a strategic shift in its crypto holdings as it reduces exposure to Grayscale Trust while increasing its stake in Block shares. This move aligns with the firm’s efforts to navigate the evolving crypto landscape and capitalize on emerging opportunities within the digital asset market.
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