Cathie Wood’s Ark Invest Sells Coinbase and GBTC Shares Amid Crypto Rally
Despite the surge in crypto prices and optimism surrounding the approval of spot Bitcoin exchange-traded funds (ETFs), Cathie Wood’s Ark Invest has sold $5.8 million worth of shares in Coinbase and Grayscale Bitcoin Trust (GBTC).
Ark sold $3.3 million worth of Coinbase shares and almost $2.5 million worth of GBTC. This includes the sale of 32,158 Coinbase shares by Ark’s Next Generation Internet ETF (ARKW) and 10,455 shares by Ark Fintech Innovation ETF.
In addition, ARKW also sold over 100,000 GBTC shares at $24.71 each.
Ark Invest Sells Into A Crypto Rally
The sales come as cryptocurrencies experience a surge in value. Bitcoin, for example, has risen over 11% to reach $34,395. Coinbase has also seen significant growth, with a 161% increase this year, while GBTC has soared 201% year-to-date.
Ark Invest holds more than $130 million in GBTC shares, making it the trust’s second-largest shareholder. GBTC is also the largest holding in ARKW, accounting for 10.42% of its weight. Furthermore, around 9% of ARKW’s portfolio consists of Coinbase shares.
Spot Bitcoin ETFs on the Horizon
The recent court victory for Grayscale over the Securities and Exchange Commission (SEC) has raised hopes for the approval of spot Bitcoin ETFs.
While this ruling does not guarantee approval for all applicants, it does make denial less likely and forces the SEC to provide more substantial reasons for rejection.
Spot Bitcoin ETFs allow investors to participate in Bitcoin without owning the actual commodity, protecting them from the risks of direct exposure. The SEC has previously rejected or delayed applications for such ETFs due to concerns about market manipulation.
One of the applications currently under review is Blackrock’s iShares Bitcoin Trust, which was listed on the Depository Trust and Clearing Corporation’s list. This development indicates that approval may be imminent, contributing to the market rally.
Currently, there are 12 pending applications for spot Bitcoin ETFs awaiting SEC clearance. This includes Ark’s application filed in collaboration with 21Shares. However, all applications were delayed by the regulator last month, extending the assessment process by at least one more month.
Hot Take: Ark Invest Reduces Exposure to Coinbase and GBTC Amid Crypto Surge
Cathie Wood’s Ark Invest has made the decision to sell millions of dollars worth of shares in Coinbase and Grayscale Bitcoin Trust (GBTC) despite the ongoing rally in cryptocurrency prices. While Bitcoin and Coinbase have experienced significant growth this year, Ark Invest has chosen to reduce its exposure to these assets. This move comes as investors eagerly await the potential approval of spot Bitcoin ETFs, which could further boost the crypto market. By selling off shares in Coinbase and GBTC, Ark Invest may be reallocating its resources to other areas within the crypto space or adjusting its investment strategy based on market conditions.
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