Strategic Changes in ARK Next Generation Internet ETF
Earlier today, Cathie Wood, the founder and CEO of ARK Investment Management, LLC, sold its remaining shares of the Grayscale Bitcoin Trust (GBTC) and purchased 4.32 million shares of the ProShares Bitcoin Strategy ETF. This decision was driven by regulatory and tax uncertainties surrounding GBTC. The narrowing discount between GBTC and its Net Asset Value was a key factor in ARK’s decision to shift its investment.
Another Important Consideration: Regulatory Certainty
Wood emphasized the importance of regulatory certainty, which the ProShares Bitcoin Strategy ETF currently provides by tracking Bitcoin futures. This ETF is already approved, eliminating the regulatory uncertainty that surrounds other products, including GBTC. She also discussed the potential approval of a spot Bitcoin ETF, expressing optimism about the increased engagement from the SEC.
Ark’s Continued Optimism About Bitcoin Future
Despite the shift in investment vehicles, Wood remains optimistic about Bitcoin’s future. ARK’s decision was out of an abundance of caution and not a reflection of a change in their outlook on Bitcoin. The interview also touched upon the potential impact of these strategic moves on ARK’s investment performance.
Hot Take: Spot Bitcoin ETF
On 26 Dec 2023, Wood expressed her thoughts on the institutional interest in the U.S. for a spot Bitcoin ETF. She mentioned that institutions prefer an accessible way to access Bitcoin and other digital assets. A spot Bitcoin ETF will be the most liquid way to access exposure to Bitcoin, and its liquidity and ability to move in and out quickly will be important to institutions.
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