In a major portfolio reshuffle, ARK Invest divests from Grayscale Bitcoin Trust and invests $100 million in Bitcoin futures ETF, BITO.
Read about their strategic moves, including investments in ARKA and the anticipated ARKB, showcasing their innovative approach in the ETF market.
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ARK Invest Divests from GBTC, Allocates Half to BITO
Renowned investor Cathie Wood's asset management giant, ARK Invest, has reportedly sold all its holdings in Grayscale Bitcoin Trust (GBTC) as part of a portfolio reshuffle.
Earlier this year, in October, the firm sold about 100,000 shares of GBTC from its ARK Next Generation Internet ETF (ARKW), and on December 18, it was reported that an additional approximately 810,000 shares (worth about $27.9 million) were sold.
In this latest divestment, the remaining GBTC holdings, valued at approximately $200 million, have been entirely liquidated.
About half of the funds obtained from the GBTC sale, amounting to $100 million, have been allocated to an investment in the Bitcoin futures ETF, ProShares Bitcoin Strategy ETF (BITO).
This move has positioned the firm as the second-largest investor in BITO. However, ETF analysts have suggested that the investment in BITO could be a "temporary parking spot."
Institutional investors like ARK Invest often prefer highly liquid ETFs for asset reallocation. Thus, this investment in BITO is seen as part of a short-term investment strategy.
ARK Invest's Strategic Moves in the ETF Market
In a separate move, ARK Invest has also sold 148,885 shares of Coinbase (worth approximately $27.5 million) from ARKW and purchased 20,000 shares of the ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA).
Furthermore, ARK Invest, in collaboration with 21Shares, has applied for a spot Bitcoin ETF, the ARK 21Shares Bitcoin ETF (ARKB).
CEO Cathie Wood, in a recent appearance on a CNBC program, stated that there is a high likelihood of ARKB being approved by January 10, 2024.
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