ARK Invest sells its GBTC shares

ARK Invest, the company of investor Cathie Wood, sold 66,342 units of Grayscale Bitcoin Trust (GBTC) for $1.66 million, at the closing price of $25.07 on October 28, 2023.

The price of Bitcoin (BTC) currently stands at $34,434.

ARK Invest benefits from the market recovery

Recent reports indicate that Wood, who founded ARK Invest in 2014, has reshaped his portfolio. Wood divested shares of Grayscale Bitcoin Trust (GBTC) while acquiring shares in a cryptocurrency-related stock.

On October 28, the fund sold 66,342 units of GBTC, amounting to $1.66 million based on the closing price of $25.07.

This sale is part of ARK Invest’s broader divestiture of GBTC shares, involving the sale of approximately $2.5 million worth of GBTC shares on October 24.

Ark Invest also sold GBTC shares in three sessions that week. On October 24, approximately $2.5 million worth of GBTC shares were sold, equivalent to approximately 2% of ARK’s stake in the trust. The next day, October 25, ARK Invest sold approximately $1.8 million worth of GBTC shares for the second day in a row. These sales of GBTC could be linked to the company’s activities. deposit for an ETF based on Bitcoin.

Additionally, on October 28, ARK Invest invested $12.4 million in a crypto-related stock, the specific name of which was not disclosed. Additionally, ARK Invest actively buys shares in other companies. On October 24, the fund acquired $2.4 million worth of shares of the popular trading platform Robinhood (HOOD).

Crypto ETF breaks barriers

ARK Invest’s recent actions could be influenced by Bitcoin’s latest rally. The cryptocurrency’s value has been soaring recently, reaching over $35,000 on October 28.

The Bitcoin price surge is also linked to a recent court ruling in the Grayscale and SEC legal battle and the approval of a spot Bitcoin ETF, which appears imminent, according to experts.

The decision by the United States Court of Appeals for the D.C. Circuit stated that the Securities and Exchange Commission (SECOND) was wrong to deny Grayscale, a major crypto investment firm, the opportunity to launch the first Bitcoin exchange-traded fund (ETF). This decision has broader implications, potentially affecting other companies like BlackRock and Fidelity, which also want to create Bitcoin ETFs.

The decision, which was the subject of several delays, stems from the SEC’s rejection of Grayscale’s application last summer. However, the denial was based on Grayscale’s failure to address concerns related to potential market manipulation and investor protection. It is important to note that the SEC does not intend to challenge the recent court ruling, recognizing its error in rejecting Grayscale Investments’ application for a spot Bitcoin ETF.

This legal result reduced the discount on Grayscale Bitcoin Trust shares, highlighting the increased importance of the price of the underlying asset. Additionally, the decision opened the door to Bitcoin exchange-traded funds, indicating a positive change in the regulatory landscape.

ARK Invest, in addition to selling its shares in Grayscale Bitcoin Trust, acquired shares in Robinhood. Notably, Wood has previously expressed trust in Grayscale Investments, recognizing its importance within Barry Silbert’s digital currency group.


Leave a Comment