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Cathie Wood’s Ark Invest Sells Entire Grayscale Bitcoin Trust Holdings

Background

Crypto investment management firm Ark Invest, led by popular investor Cathie Wood, has reportedly sold its entire position in the Grayscale Bitcoin Trust (GBTC), a popular crypto investment vehicle. According to Bloomberg analyst Eric Balchunas, approximately $45 million worth of GBTC shares were sold earlier this month. The firm also offloaded over $150 million worth of shares in Coinbase, the largest cryptocurrency exchange in the U.S.

Investments in Bitcoin Futures ETF

Balchunas reported via Twitter that $100 million from the GBTC sales was invested into the ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures ETF. After selling its Grayscale Bitcoin Trust shares, Ark Invest reportedly used about half of the proceeds to buy shares in BITO.

Other Sales and Potential Strategy

ARK Invest sold 148,885 Coinbase shares worth approximately $27.5 million through its ARK Next Generation Internet ETF (ARKW), according to filings. Industry observers speculate that Ark Invest’s portfolio moves could be to position favorably before a potential market shift or as a precaution against expected market corrections. Wood explained that selling off Coinbase shares was a part of Ark Invest’s broader portfolio adjustment strategy.

Outlook

The potential approval of a spot Bitcoin ETF by January 2024 is being monitored by the crypto sector. Increased institutional investment in Bitcoin is expected if such an ETF is approved. Observers are watching for further developments and adjustments in investment strategies related to crypto-assets.

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