Ark Invest purchased $92 million worth of ProShares Bitcoin Strategy ETF (BITO) and 4,320,928 units of the US Bitcoin futures-linked ETF.
Cathie Wood’s asset management firm Ark Invest has actively engaged in portfolio rebalancing this year amid a surge in stock prices of crypto firms. In the latest development on Wednesday, December 27, Ark Invest divested its Coinbase holdings and all of its GBTC holdings.
In a recent trade filing, the company led by Cathie Wood revealed the sale of 148,885 Coinbase shares valued at approximately $27.58 million on Wednesday. Concurrently, Ark Invest made significant acquisitions, purchasing $92 million worth of ProShares Bitcoin Strategy ETF (BITO) and 4,320,928 units of the US Bitcoin futures-linked ETF.
The transaction was executed by the ARK Next Generation Internet ETF (ARKW), which divested from Coinbase Global Inc (NASDAQ: COIN) shares on the same day. This move followed Ark Invest’s earlier sale of over $200 million in Coinbase shares over the past month.
Despite the selling spree, Coinbase stock closed 7.67% higher at $185.24 on the mentioned day. The ongoing divestment reflects Ark Invest’s proactive approach to rebalancing fund weightings amidst the substantial surge in Coinbase’s stock price, which has risen by 54.6% in the past month. Eric Balchunas, senior ETF analyst for Bloomberg, said:
“Just like that ARK is now the second biggest holder of BITO, although again this is a temporary parking spot. They (and institutions generally) use highly liquidity ETFs for transitions like this.”
Ark Invest Sells GBTC Shares
In a significant development in the cryptocurrency sector, Ark Invest, led by renowned investor Cathie Wood, has divested entirely from Grayscale Bitcoin Trust (GBTC), a former key asset in its ARKW portfolio. This strategic move towards Bitcoin futures, particularly through the BITO – ProShares’ Bitcoin futures ETF launched in October 2021, signals a substantial shift in investment strategy, underscoring the dynamic nature of cryptocurrency investments and evolving regulatory landscapes.
Ark Invest’s decision is timely, aligning with the period leading up to the anticipated approval of the spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). This strategic move could be part of portfolio realignment in anticipation of the new ETF or as a precautionary measure against potential market fluctuations before the January 10, 2024, deadline.
Cathie Wood’s optimistic outlook on the SEC’s imminent approval of the Bitcoin ETF has also instilled hope in the crypto community. Her engaged discussions with SEC officials, marked by detailed and technical dialogues, suggest a fruitful exchange on the future of cryptocurrency ETFs.
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