Posted by • Ark Invest recently sold 500,000 shares of Grayscale Bitcoin Trust (GBTC) despite the recent market recovery.
• The sale of GBTC shares was concurrent with an accumulation of Coinbase (COIN) shares, with ARKW adding 320,000 shares worth $17.6 million in 2023.
• The firm was also concerned about Genesis Global, which filed for bankruptcy claiming $1 billion to $10 billion in liabilities to creditors.
Cathie Wood’s Ark Invest recently sold 500,000 shares of Grayscale Bitcoin Trust (GBTC) despite the recent crypto market recovery. The sale of GBTC shares was concurrent with an accumulation of Coinbase (COIN) shares. The firm had added about 450,000 shares to its ARK Next Generation Internet ETF (ARKW) back in November 2022 when the price of bitcoin was in a range between $7.46 and $9.48. Since the market recovery, GBTC’s price has come up and the discount has reduced from 50% to 40%.
ARKW also added 320,000 shares worth $17.6 million in 2023. Following this boost, the Coinbase stock weight in the Ark Investment portfolio increased significantly. The firm’s December report also mentioned that the share reduction was in line with their ‘bearish view’ on GBTC.
Unfortunately, due to rejections from the SEC, Grayscale has yet to convert its bitcoin trust into an ETF. Moreover, if the SEC approves the conversion, GBTC’s discount could be reset to zero. Additionally, the firm was also concerned about Genesis Global, which filed for bankruptcy claiming $1 billion to $10 billion in liabilities to creditors.
Overall, despite the recent sale of GBTC shares, the weight of GBTC in the Ark Investment portfolio has increased. The firm’s move could be an indication of a short-term profit-taking. With the crypto market on the rise and the SEC yet to approve the conversion to an ETF, it will be interesting to see how Ark Invest navigates the market in the future.