ARK Invest, the investment firm run by Cathie Wood, has recently sold a significant number of shares in the Grayscale Bitcoin Trust (GBTC) worth $5.02 million. The move is part of a broader strategy to rebalance the firm’s portfolio, rather than a reflection of a shift in sentiment towards bitcoin or a precursor to the launch of their proposed ARKB ETF.
The most recent sale, which took place last week, involved 163,722 shares of GBTC. This action is consistent with ARK’s approach to maintaining strategic investment weightings. The firm aims to maintain a target allocation of close to 9%, which was necessitated by GBTC’s substantial 76% gain since August.
Bloomberg ETF analysts noted that ARK’s sale of GBTC shares is consistent with its portfolio rebalancing efforts. The decision to sell was triggered by bitcoin’s price rally, which saw the cryptocurrency approach the $34,000 mark on October 23, prompting ARK to begin unloading some of its holdings.
Since October 23rd, ARK has cumulatively divested itself of approximately 864,000 shares of GBTC. This selling strategy is part of the firm’s practice of capitalizing on asset performance peaks. In November of last year, ARK also made a portfolio adjustment by selling over four hundred thousand shares of GBTC.
In addition to these portfolio adjustments, ARK is actively pursuing the launch of a spot bitcoin ETF in partnership with 21Shares. The companies have advanced their filing with the U.S. Securities and Exchange Commission (SEC), with the most recent amendment on November 20th detailing custody and valuation strategies for the proposed fund. This application is one of twelve awaiting regulatory approval.
The latest prospectus update comes as ARK and 21Shares continue to await SEC approval for their joint spot bitcoin ETF. The detailed custody and valuation methodologies outlined in the amendment demonstrate ARK’s commitment to regulatory compliance and the advancement of cryptocurrency investment products.
