ARK Sells Grayscale Bitcoin Trust Shares Amid BTC ETF Anticipation
Investment firm ARK, led by Cathie Wood, a pro-Bitcoin investor, has sold 100,739 shares of Grayscale Bitcoin Trust (GBTC) worth $2.5 million from its ARK Next Generation Internet ETF (ARKW). This comes as GBTC reaches multi-month highs, surging over 200% year-to-date and nearly 30% in the past 30 days. The sale represents about 2% of the total GBTC value in ARKW’s portfolio. GBTC is the largest asset held by ARKW at 10.4% exposure.
ARK’s GBTC Sale Linked to BTC ETF Decision
The sale of GBTC shares by ARK may be related to its pending Bitcoin-based exchange-traded fund (ETF) filing with the United States Securities and Exchange Commission (SEC). Grayscale filed a new BTC ETF registration statement with the SEC shortly after ARK amended its own spot Bitcoin ETF filing. Analysts speculate that if ARK’s spot Bitcoin ETF is approved, the firm would prioritize it over GBTC and potentially remove GBTC from its holdings.
Online Traders Speculate on ARK’s ETF Approval Impact
Online traders have speculated that if ARK’s spot Bitcoin ETF is approved, it would likely become the top holding in ARKW, displacing GBTC. Some believe that there is an obscure rule requiring ARK to pay capital gains tax if they sell GBTC shares. However, ARK has not commented on these speculations or provided further details regarding its recent share sales.
ARK Sells Coinbase Shares and Adds Robinhood Shares
In addition to selling GBTC shares, ARK also sold shares of Coinbase (COIN) from both ARKW and its ARK Fintech Innovation fund. The total value of the COIN shares sold amounted to $3.4 million. However, ARK continues to acquire shares of Robinhood (HOOD), adding 32,158 HOOD shares worth $300,000 to ARKW.
Hot Take: ARK’s GBTC Sale May Indicate ETF Confidence
The recent sale of GBTC shares by ARK could suggest that the investment firm is confident in the approval of its Bitcoin-based ETF filing. By reducing its exposure to GBTC, ARK may be positioning itself for the potential success of its own ETF offering. This move aligns with the speculation that if approved, ARK’s spot Bitcoin ETF would become the top holding in ARKW, potentially replacing GBTC. Overall, ARK’s actions indicate a strategic shift in its cryptocurrency investment strategy.
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