The move by proBitcoin Cathie Wood’s firm confirmed offloading shares in the global second largest crypto exchange, Coinbase. Also offloaded were shares from the world’s largest Bitcoin fund despite the leading crypto realizing a 10% rally.
Ark Invest Seizes Bitcoin Rally in Offload Trade
Ark Invest decided to profit on the 10% surge in Bitcoin fueled by the renewed anticipation of the Securities and Exchange Commission finally approving a spot exchange-traded fund (ETF). Ark Invest seized the rally to offload several of the Bitcoin-related assets.
The latest information conveyed by Ark Invest via its X (formerly Twitter) account on Monday showed that it offloaded 42613 COIN shares via the ARK Next Generation Internet ETF (ARKW). Also involved in the sale is the ARK Fintech Innovation ETF, estimated at $3.29 million at $77.21. Wood’s investment vehicle offloaded 100739 shares belonging to Grayscale Bitcoin Trust at an average price of $24.70 to raise $2.48 million.
Wood’s Ark Invest sold the shares coincidentally when Bitcoin rallied to $34000, setting the highest price in 2023. Despite the sale, Ark Invest has the second largest GBTC shareholding, estimated at $130 million. GBTC accounts for a 10.42% weight, placing it at the top of ARKW’s holding.
Wood’s ARKW involves a fund with an active investment bias towards internet-based products and services. Also, it targets investment in artificial intelligence (AI) e-commerce, cloud computing, and media-related innovations. COIN features 9.08% of the ARKW portfolio at the time of writing.
Ark Invest executed the trade at a time when the COIN year-to-date gained 130% since the onset of 2023. GBTC realized even better year-to-date gains at 201%.
Grayscale’s Stock Realizes Premium Price as ETF Approval Looms
Grayscale has witnessed a rally in the flagship Bitcoin fund’s share price that by Monday evening was exchanging hands at a 4.5% high. The increment traces to the US Court of Appeals news compelling the SEC to review the spot Bitcoin ETF bid by Grayscale Investment.
The judgment of the Court of Appeals relates to the charges levied against the Gary Gensler-led SEC in 2022. Grayscale sued the regulator for the refusal to permit GBTC conversion into the coveted spot Bitcoin ETF.
Grayscale achieved an impressive victory that fueled the Bitcoin rally in August 2023. The Court observed failure in the SEC to adequately illustrate the ground for approving Bitcoin futures ETFs and still dismissed Grayscale’s bid for GBTC.
The SEC has previously cited the susceptibility of the spot Bitcoin ETF to price manipulation as a group to deny the applications repeatedly. Recently, the SEC confirmed postponing decisions on the existing applications for the spot ETF. Doing so attracts criticism from the community as a loss of investment opportunity for the US as investors seek exposure to the lead cryptocurrency by market capitalization without exercising physical ownership of the asset.
The Court’s decision hardly binds the SEC to approve the GBTC conversion to Bitcoin ETF. The securities watchdog could cite other grounds to dismiss the application.
Ark Invest in Race for Spot Bitcoin ETF Approval
The debate on spot Bitcoin ETF approval is garnering steam. Recently, the crypto market rallied following a publication by the crypto news platform Cointelegraph indicating BlackRock’s ETF approval. The applicant and SEC dismissed the publication hours after the news fuelled an upswing.
The Bitcoin price witnessed a second uptrend following the listing of BlackRock’s spot Bitcoin ETF ticker iShares Bitcoin Trust (IBTC) on the Depository Trust & Clearing Corporation (DTCC). The listing triggered activity as BlackRock awaits the SEC’s decision on the application that it recently amended.
As the chief investment executive of Ark Invest, Cathie Wood repeatedly advocates for Bitcoin. She previously predicted Bitcoin would realize a $1 million price. Also, the firm is awaiting the SEC’s decision on its amended application for the spot Bitcoin ETF submitted this month.
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