Investment firm ARK, led by pro-Bitcoin investor Cathie Wood, has sold Grayscale Bitcoin Trust (GBTC) shares as the market surges in anticipation of a spot Bitcoin exchange-traded fund (ETF).
ARK Sells 100,739 GBTC Shares
On October 23, ARK sold 100,739 GBTC shares, totaling $2.5 million, from its ARK Next Generation Internet ETF. This marks ARK's first reported GBTC transaction since November 2022.
GBTC Reaches Multi-Month Highs
GBTC has recently reached multi-month highs, hitting $24.7 for the first time since May 2022. Year-to-date, GBTC has surged over 200% and has seen a nearly 30% increase over the past 30 days.
ARK's GBTC Position and Potential Reasons for the Sale
The recent GBTC sale represents about 2% of the total GBTC value in ARKW's portfolio, which is approximately $122.6 million. GBTC is the largest asset in ARKW, accounting for 10.4% of the product's exposure. Some speculate that ARK's decision to sell GBTC may be related to its pending Bitcoin-based ETF filing with the United States Securities and Exchange Commission (SEC). If ARK's ETF is approved, it is possible that the firm would prioritize its ETF as the first holding in ARKW and sell off GBTC.
ARK did not provide immediate comment on the GBTC sale.
Additional Sales and Investments
In addition to selling GBTC shares, ARK also sold shares of Coinbase and Robinhood. The firm sold 32,158 Coinbase shares from ARKW and 10,455 Coinbase shares from its ARK Fintech Innovation fund, totaling $3.4 million. However, ARK continued to invest in Robinhood, adding 32,158 shares worth $300,000 to ARKW on October 23.
