ARK sells remainder of GBTC holdings, invests $100M in Bitcoin ETF


Cathie Wood-led institutional asset management firm ARK Invest liquidated its entire remaining Grayscale Bitcoin Trust (GBTC) holdings worth $200 million on Dec. 28, revealed Bloomberg ETF analyst Eric Balchunas. 

The investment firm used half of the money, about $100 million, from the sale of GBTC to invest in Bitcoin Futures ETF Bito. However, ETF analysts believe it’s a temporary parking spot for the investment firm as it looks for a more liquidity-rich portfolio. Bloomberg ETF analyst Eric Balchunas said this latest investment shift by Ark has made it the second-largest Bito holder.

ARK Invest started off-loading GBTC shares in October when the Bitcoin price first hit $34,000; at the time, the investment firm sold 100,739 GBTC shares worth $2.5 million from its ARK Next Generation internet ETF (ARKW). The firm sold another 809,441 GBTC shares on Dec. 19 worth $27.9 million.

Apart from dumping the GBTC, ARK Invest also liquidated 148,885 Coinbase shares worth $27.5 million from its ARK Next Generation internet ETF (ARKW). The latest investment move by the asset management firm comes at a crucial juncture when there is intense speculation around the approval of a spot Bitcoin ETF.

Related: BlackRock, ARK revise Bitcoin ETF plans along SEC’s cash-only model

ETF analysts like Balchunas have given a 99% chance of approval for a Bitcoin ETF before the deadline of Jan.10, 2024. ARK Invest CEO Cathie Wood, a known Bitcoin proponent, has said that the chances of a spot Bitcoin ETF are high.

During a recent interview, Wood said that growing anticipation around the potential approval of spot Bitcoin ETFs could negatively impact the BTC price in the short term, but the long-term perspective is promising.

Magazine: SEC delays Ether ETFs, Binance settlement approved and another court loss for SBF: Hodler’s Digest, Dec. 17–23