Nikolas Sargeant
ARK Invest, led by Cathie Wood, has made a noteworthy decision to liquidate its entire investment in the Grayscale Bitcoin Trust (GBTC), totaling $200 million. This move is seen as a proactive adjustment in anticipation of the Securities and Exchange Commission's (SEC) upcoming decision on spot Bitcoin ETFs.
Instead of holding GBTC, ARK Invest redirected $100 million into the ProShares Bitcoin Strategy ETF (BITO), a move perceived by analysts as a temporary measure. Bloomberg ETF analyst Eric Balchunas suggests that this could be a strategic pause as ARK prepares to introduce its own spot Bitcoin ETF pending SEC approval next year.
This divestment from Grayscale follows a gradual process initiated in October when Bitcoin was valued at $34,000. Since then, ARK Invest has progressively sold its GBTC shares, with the latest transaction on December 19 amounting to $27.9 million.
In addition to parting ways with GBTC, ARK Invest also divested 148,885 Coinbase shares, valued at $27.5 million, aligning with broader speculation around the approval of a spot Bitcoin ETF. As a result of these moves, ARK Invest has become the second-largest holder of the Bito ETF.
In a parallel development, Grayscale Bitcoin Trust's parent company, Grayscale Investments, witnessed resignations from key figures Barry Silbert and Mark Murphy. This move is widely interpreted as a compliance effort in anticipation of a potential Bitcoin ETF approval. Grayscale amended its S-3 filing for the conversion of GBTC into a spot Bitcoin ETF on the same day, aligning with SEC demands for cash-only creation for fund redemptions.
As the SEC evaluates Bitcoin ETF approvals, Grayscale faces competition from established players such as Fidelity, BlackRock, and ARK Invest in this evolving crypto landscape.
