Cathie Wood’s asset management firm, ARK Invest, has sold all its positions in Grayscale’s Bitcoin Trust (GBTC) and purchased $92 million worth of ProShares Bitcoin Strategy ETF (BITO). This move is part of ARK’s ongoing trading activities that have impacted its Bitcoin-related holdings. The selling spree also included divesting over 700,000 units of GBTC in November, despite the rising value of the shares. Additionally, ARK has sold over $200 million worth of Coinbase stock this month.
The purchase of BITO shares by ARK is surprising, considering that its BTC spot ETF application is currently under review. However, this purchase is likely a temporary liquidity transition tool to retain high beta with Bitcoin. Eric Balchunas, a senior ETF analyst for Bloomberg, suggests that institutions like ARK use highly liquid ETFs for transitions like this. The move is expected to enhance the ETFs’ assets under management and potentially offer advantages to their investors by improving expense ratios.
Overall, ARK’s trading activities reflect its efforts to rebalance its fund weightings and adapt to market conditions. By exiting GBTC entirely and investing in BITO, ARK is positioning itself strategically in the evolving Bitcoin market.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Cathie Wood |
| Companies | Grayscale, ARK Invest, ProShares, Coinbase, Bitcoin Strategy ETF |
| Currencies | Bitcoin, Tether, USDC |
| Securities | Tesla, ARKW, COIN, GBTC, BITO |
