Investment firm ARK, led by renowned Bitcoin investor Cathie Wood, has sold over 100,000 shares of Grayscale Bitcoin Trust (GBTC) as the market experiences a surge in anticipation of a spot Bitcoin exchange-traded fund (ETF). The sale was made on October 23 and amounted to $2.5 million.
This transaction comes at a time when GBTC is reaching its highest levels in several months, reaching $24.7 for the first time since May 2022. Throughout the year, GBTC has experienced a surge of over 200% and has increased by nearly 30% in the past 30 days, according to data from TradingView.
The recent sale of GBTC marks ARK’s first reported transaction of GBTC shares since November 2022. In the previous transaction, the firm added 450,272 GBTC shares worth $4.5 million to its ARK Next Generation Internet ETF (ARKW) portfolio.
The sale of GBTC shares represents approximately 2% of the total value of GBTC in ARKW’s portfolio, which amounts to $122.6 million as of October 23. GBTC is currently the largest asset held by ARKW, accounting for 10.4% of the product’s exposure. This is followed by shares of Coinbase and Roku, which account for 9% and 7.4% of the exposure, respectively.
Bitcoin advocate Samson Mow speculates that ARK’s decision to sell GBTC shares may be influenced by their anticipation of the United States Securities and Exchange Commission’s (SEC) decision regarding their filing to list a Bitcoin-based ETF. Grayscale filed a new BTC ETF registration statement with the SEC on October 19, shortly after ARK amended its spot Bitcoin ETF filing on October 11.
Mow believes that with the decreasing discount on GBTC, it makes sense for ARK to sell these shares now, especially if they have their own ETF filing pending. The market has also speculated that if ARK’s spot Bitcoin ETF is approved, the firm would likely prioritize their ETF and sell off GBTC shares.
ARK has not yet provided any comments regarding the recent sale of GBTC shares.
In addition to GBTC, ARK has also sold shares of Coinbase and Robinhood. The firm sold 32,158 Coinbase shares from ARKW and another 10,455 Coinbase shares from its ARK Fintech Innovation fund, totaling $3.4 million. However, ARK continues to acquire shares of Robinhood, adding 32,158 shares worth $300,000 to its ARKW portfolio on October 23.
As the anticipation for a spot Bitcoin ETF grows, ARK’s decision to sell off GBTC shares indicates a strategic move to potentially prioritize their own ETF once approved. These developments showcase the evolving landscape of Bitcoin investments and highlight the significance of regulatory decisions in shaping the market.