ARK Invest, the institutional asset management firm led by Cathie Wood, has recently divested its remaining holdings in Grayscale Bitcoin Trust (GBTC), amounting to approximately $200 million. This liquidation occurred on December 28, with ARK Invest planning to allocate about half of the sale proceeds, roughly $100 million, into the Bitcoin futures ETF known as Bito. However, industry analysts view this move as a temporary placement of funds while the investment firm seeks a more fluid investment portfolio. Eric Balchunas, an ETF analyst at Bloomberg, noted that ARK Invest now stands as the second-largest holder of Bito.
The decision to unload GBTC began in October for ARK Invest when Bitcoin initially reached $34,000. At that time, the investment firm sold off 100,739 GBTC shares, valued at $2.5 million, from its ARK Next Generation Internet ETF (ARKW). This was followed by an additional sale of 809,441 GBTC shares on December 19, amounting to $27.9 million.
Apart from the disposal of GBTC shares, ARK Invest also offloaded 148,885 shares of Coinbase, totaling $27.5 million, within its ARK Next Generation Internet ETF (ARKW). This strategic shift in investments arrives at a pivotal moment amidst intense speculation about the potential approval of a spot Bitcoin ETF. Analysts, including Balchunas, estimate a 99% likelihood of a Bitcoin ETF gaining approval before the January 10, 2024 deadline. Cathie Wood, ARK Invest's CEO and a notable advocate for Bitcoin, expressed optimism about the prospect of a spot Bitcoin ETF getting approval.
Wood highlighted in a recent interview that the rising anticipation for a potential spot Bitcoin ETF's approval might have a short-term adverse impact on BTC prices, yet she remains positive about the long-term prospects. She suggests that although this anticipation might temporarily affect Bitcoin prices negatively, the future outlook appears promising for the cryptocurrency.
