Cathie Wood’s ARK ETF Makes Strategic Changes to Bitcoin Holdings
Cathie Wood’s ARK Next Generation Internet exchange-traded fund (ETF) has made significant changes to its Bitcoin-related holdings as BTC ends the year with a 156% surge. The ETF sold all its remaining shares of the Grayscale Bitcoin Trust (GBTC) while acquiring shares of the ProShares Bitcoin Strategy ETF.
Caution Leads to Exit from Grayscale Bitcoin Trust
The sale of the Grayscale Bitcoin Trust was prompted by caution and concerns that its conversion to a spot Bitcoin ETF might not receive regulatory approval. The substantial reduction in the trust’s discount to its net asset value also influenced the decision.
Bloomberg ETF expert Erich Balchunas highlights that a portion of the proceeds were used to purchase the ProShares Bitcoin Strategy ETF as a transition vehicle. ARK has become the second-largest holder of BITO, although this is temporary.
Wood’s Long-Term Vision
Cathie Wood has gradually reduced her holdings of the Grayscale Bitcoin Trust, even as Bitcoin’s price surged. The ARK Next Generation Internet ETF purchased shares of the ARK 21Shares Active Bitcoin Futures Strategy ETF and sold shares of Coinbase Global.
The ARK ETF has achieved an impressive gain for the year, surpassing the Nasdaq 100 Index. However, its performance has been characterized by significant volatility in previous years.
Hot Take: Cathie Wood Adapts to Regulatory Uncertainty
Cathie Wood’s strategic changes to her ETF’s Bitcoin holdings reflect her adaptability in response to regulatory uncertainty. By selling shares of the Grayscale Bitcoin Trust and acquiring shares of the ProShares Bitcoin Strategy ETF, Wood positions herself for potential future developments in the Bitcoin market.
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