ARK Investment firm, led by Bitcoin investment veteran Cathie Wood, has sold Grayscale Bitcoin Trust (GBTC) shares amidst the anticipation of a spot Bitcoin exchange-traded fund (ETF) and the resulting market surge. According to a trade notification seen by Cointelegraph, ARK sold 100,739 GBTC shares worth $2.5 million from its ARK Next Generation Internet ETF (ARKW). This sale comes as GBTC reached multimonth highs, reaching $24.7 for the first time since May 2022. GBTC has surged over 200% year-to-date and nearly 30% over the past 30 days.
This is the first reported GBTC transaction by ARK since November 2022, when the firm added 450,272 GBTC shares worth $4.5 million to ARKW. The recent sale accounts for about 2% of the total GBTC value in ARKW’s portfolio, which amounts to $122.6 million as of October 23. GBTC is the largest asset held by ARKW, accounting for 10.4% of the product’s exposure. Other top holdings include Coinbase and Roku’s shares.
Speculation has arisen that ARK’s decision to sell GBTC shares may be linked to the firm awaiting a decision from the United States Securities and Exchange Commission (SEC) regarding its filing to list a Bitcoin-based ETF. Grayscale recently filed a new BTC ETF registration statement with the SEC, and ARK amended its spot Bitcoin ETF filing. Bitcoin advocate Samson Mow suggests that selling GBTC now makes sense for ARK as the discount is decreasing and they have their own ETF filing pending.
It has been suggested by online traders that if ARK is approved for a spot Bitcoin ETF, the firm is likely to put its ETF as the top holding in ARKW and sell off GBTC. There is a rule that if ARK sells GBTC, they will have to pay out capital gains on it.
In addition to selling GBTC, ARK also sold Coinbase shares from ARKW and its ARK Fintech Innovation fund for a total of $3.4 million. However, the investment firm continued to acquire Robinhood shares, adding $300,000 worth of shares to ARKW.
Cointelegraph reached out to ARK for comment but did not receive an immediate response.
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