ARK Invest adjusts portfolio with $5 million GBTC share sale
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ARK Invest, the investment firm headed by Cathie Wood, has recently sold a significant number of shares in the Grayscale Bitcoin Trust (GBTC), amounting to a value of $5.02 million. This 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 latest sale, which occurred over the past week, involved 163,722 GBTC shares. This action is consistent with ARK’s approach to maintaining strategic investment weightings. The firm aims to keep a target allocation near 9%, which necessitated the sale due to the substantial 76% increase in GBTC’s value since August.
Bloomberg ETF analysts highlighted that ARK’s sale of GBTC shares aligns with their portfolio rebalancing efforts. The decision to sell was triggered by Bitcoin’s price rally, which saw the cryptocurrency nearing the $34,000 mark on October 23, prompting ARK to begin offloading portions of its holdings.
Since October 23, ARK has cumulatively parted with approximately 864,000 GBTC shares. This sell-off strategy is part of the firm’s practice of capitalizing on asset performance highs. In November of the previous year, ARK had also engaged in portfolio adjustment, selling over four hundred thousand GBTC shares.
In addition to these portfolio adjustments, ARK is actively pursuing the launch of a spot Bitcoin ETF in partnership with 21Shares. The firms have advanced their application with the U.S. Securities and Exchange Commission (SEC), with the latest amendment on November 20 detailing custody and valuation strategies for the proposed fund. This application is one of twelve awaiting regulatory approval.
The recent update to their prospectus comes as ARK and 21Shares continue to await SEC approval for their joint spot Bitcoin ETF. The detailed custody and valuation methods outlined in the amendment signify ARK’s commitment to regulatory compliance and the advancement of cryptocurrency investment products.