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ARK Invest Dumps GBTC Shares, Cites Concerns Over Bitcoin Investment Trust’s Premium

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“ARK Invest strategically diversifies portfolio as it offloads GBTC shares, showcasing their commitment to actively managing risk and seizing opportunities in the rapidly evolving cryptocurrency market.”

ARK Invest, the investment firm founded by Cathie Wood, recently sold 66,342 units of Grayscale Bitcoin Trust (GBTC) for $1.66 million. The sale took place on October 28, 2023, with a closing price of $25.07 per unit. This move is part of Wood’s portfolio reshaping strategy, which involves divesting GBTC shares and acquiring shares in a cryptocurrency-related stock.

ARK Invest has been actively selling GBTC shares in recent weeks. On October 24, the firm sold approximately $2.5 million worth of GBTC shares, equivalent to around 2% of its holdings in the trust. The following day, October 25, another $1.8 million of GBTC shares were sold. These sales may be connected to ARK Invest’s filing for a Bitcoin-based ETF.

In addition to selling GBTC shares, ARK Invest also invested $12.4 million in a crypto-linked stock on October 28. The specific name of the stock was not disclosed. The firm has also been purchasing shares in other companies, such as Robinhood, where it acquired $2.4 million worth of shares on October 24.

The recent actions of ARK Invest may be influenced by the rally in Bitcoin’s price. The cryptocurrency reached over $35,000 on October 28. This surge in price is attributed to a court ruling in the legal battle between Grayscale and the Securities and Exchange Commission (SEC), as well as the potential approval of a spot Bitcoin ETF. The court ruling stated that the SEC was mistaken in denying Grayscale the opportunity to launch the first Bitcoin ETF. This decision has broader implications for other companies interested in creating Bitcoin ETFs, such as BlackRock and Fidelity.

The ruling has also narrowed the discount on Grayscale Bitcoin Trust shares and opened the door for Bitcoin exchange-traded funds. This signifies a positive shift in the regulatory landscape. Despite divesting GBTC shares, ARK Invest continues to express confidence in Grayscale Investments and recognizes its significance within the Digital Currency Group.

Overall, ARK Invest’s recent actions reflect its strategic approach to capitalize on market recovery and take advantage of opportunities in the cryptocurrency space.

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