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ARK Invest Liquidates $200 Million in GBTC Holdings, Shifts Focus to Bitcoin Futures ETF

ARK Invest, led by Cathie Wood, a prominent institutional asset management firm, has made a significant move in its investment portfolio by liquidating its entire remaining holdings of the Grayscale Bitcoin Trust (GBTC), valued at $200 million.

Bloomberg ETF analyst Eric Balchunas brought this development to light.

From the proceeds of the GBTC sale, ARK Invest allocated approximately $100 million towards an investment in the Bitcoin Futures ETF called Bito.

Nonetheless, industry experts view this move as a temporary measure, with ARK Invest likely seeking a more liquid and diversified investment portfolio.

Consequently, ARK Invest has now become the second-largest holder of Bito, according to Eric Balchunas.

The process of divesting from GBTC began in October, coinciding with Bitcoin’s price reaching $34,000.

At that time, ARK Invest initiated the sale of 100,739 GBTC shares, valued at $2.5 million, from its ARK Next Generation Internet ETF (ARKW). Later, on December 19, the firm sold an additional 809,441 GBTC shares worth $27.9 million.

READ MORE: Bitcoin Price Faces Seasonal Headwinds: BTC Drops to $42,200

In addition to shedding GBTC, ARK Invest also offloaded 148,885 shares of Coinbase, a popular cryptocurrency exchange, amounting to $27.5 million, from its ARK Next Generation Internet ETF.

These actions by ARK Invest are significant, given the ongoing anticipation surrounding the approval of a spot Bitcoin ETF.

Notably, ETF analysts, including Eric Balchunas, have expressed a 99% probability of a spot Bitcoin ETF receiving approval before the deadline of January 10, 2024.

Cathie Wood, the CEO of ARK Invest and a notable advocate for Bitcoin, has been vocal about the likelihood of a spot Bitcoin ETF gaining approval.

During a recent interview, Wood acknowledged that the heightened expectations regarding the approval of spot Bitcoin ETFs could have a short-term impact on Bitcoin’s price.

However, she emphasized the promising long-term outlook for the cryptocurrency market.

Wood’s comments reflect the dynamic nature of the crypto industry and the significant role institutional players like ARK Invest play in shaping its future.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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