Cathie Wood’s Ark Invest Sells Another Batch Of GBTC Holdings

Cathie Wood’s ARK Invest cuts holdings from its top investment in Grayscale Bitcoin Trust, as reported by Bloomberg. The investment firm has sold more than 700,000 shares of GBTC. The move came after the DoJ sued Binance for $4 billion due to exchange policy concerns.

ARK Invest is one of the fourth largest investors in Gray Scale Bitcoin Trust. The data from September 30, 2023 claims that the firm has 5.6 million shares.

ARK Invest Reshaping Their Portfolio

Previously, Cathie Wood has strategically adjusted the firm’s portfolio by clearing shares of Grayscale Bitcoin Trust (GBTC). On October 28, ARK Invest executed another substantial sale of 66,342 GBTC units, summing up to $1.66 million based on the closing price of $25.07.

ARK Invest had previously sold approximately $2.5 million in GBTC shares on October 24. Notably, the fund engaged in multiple sessions of GBTC sales during that week. The selling represents about 2% of ARK’s total holdings in the trust.

The following day, on October 25, ARK Invest continued its spree, selling approximately $1.8 million of GBTC shares for the second consecutive day.

These strategic GBTC sales have raised speculation, with analysts suggesting a potential connection to ARK Invest’s recent filing for a Bitcoin-based exchange-traded fund (ETF).

The recent sales have occurred despite Bitcoin reaching its highest level since May 2022 earlier this month, rising beyond $37,000. GBTC funds are associated with the Bitcoin price and ought to rise when the Bitcoin price rises or vice versa.

This improved the situation for many investors who had previously invested in Bitcoin, Bitcoin ETFs, or trust funds to make a profit.

Also Read: US CFTC Warns Crypto Exchanges, Says Binance Is Just the Beginning

ARK21Shares Revised Bitcoin ETF Prospectus

On 20 Nove 2023, ARK Invest refiled its spot BTC ETF prospectus after making some changes. This re-filing has prompted even more excitement among cryptocurrency investors. The perseverance of ARK Invest in modifying and re-filing their application for a spot Bitcoin ETF is the most recent indication of increased institutional interest in direct cryptocurrency exposure.

After years of rejections by the SEC, major financial institutions including BlackRock, Fidelity, and Galaxy Digital have filed applications for spot BTC ETFs this year.

ARK’s ongoing prospectus updates, including expanded risk disclosures, show that it is actively striving to resolve the SEC’s concerns.

Also Read: Just In: Changpeng Zhao X Account Temporarily Suspended, Then Restored