ARK Invest, Cathie Wood’s tech-focused investment manager, has sold about $2.5 million worth of shares in the Grayscale Bitcoin Trust (GBTC).The fund offloaded 100,739 shares, or around 2% of its holdings in the ARK Next Generation ETF (ARKW).The sale took place at the same time as bitcoin (BTC) saw a bullish spike, rising above $34,000 for the first time in almost eighteen months.Ark is the second-largest holder of the trust with over 5.6 million GBTC shares, according to FactSet data.
The expectation that the U.S. Securities and Exchange Commission (SEC) would eventually approve a spot bitcoin exchange-traded fund (ETF) is what is responsible for the momentum of bitcoin. This anticipation stems from asset management giant BlackRock listing its proposed ETF on the Depository Trust & Clearing Corporation database, bearing the ticker $IBTC.
After the investing business won its legal battle with the SEC over the latter’s denial of its request to convert the trust into an ETF, Grayscale’s GBTC may also be granted approval as a spot ETF in the United States.Moreover, Ark purchased $2.4 million in shares of the well-known trading platform Robinhood (HOOD) and sold roughly $3.3 million worth of Coinbase (COIN) cryptocurrency exchange shares.ARK, led by Cathie Wood, has a history of accumulating equities near cryptocurrency companies during down markets.This GBTC share sale is an illustration of the opposite strategy, which is to profit from a positive market environment.