Ark Invest Fully Leaves GBTC Prior to a Looming Bitcoin ETF Sanctioning

Ark Invest has fully relinquished its GBTC position as the fund manager seeks to position itself amid a possible Bitcoin ETF consent.

Allegedly, Ark Investment is positioning itself for possible acceptance of a spot in the Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). 

Ark Invest Offloads Entire GBTC Shares

Throughout December, Ark Investment, under the leadership of Cathie Wood, has deprived its exposure to Grayscale Bitcoin Trust (GBTC), winding up its shares within that time frame.

On Wednesday, nevertheless, it seems that Ark Invest had fully exited Grayscale Bitcoin Trust. Eric Balchunas, an ETF analyst, quoted a holdings file acquired from the investment management company, indicating it has a 0% weight in GBTC. Further, it invested nearly $100M in the ProShares Bitcoin Strategy exchange-traded fund (BITO). 

The BITO EFT refers to a futures-founded contract that provides exposure to Bitcoin’s price. This is despite the fund not holding the underlying asset. After the recent purchase, Ark Investment became the 2nd biggest BITO Holder after Goldman Sachs.

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Grayscale Bitcoin Trust Sales and BITO Allocation Just ‘Brief’

Eric claims that BITO’s allocation is considered to be a short-term move. Most importantly, it would ensure a smooth transition in case the investment firm gets approval from the Securities and Exchange Commission to introduce a spot Bitcoin exchange-traded fund together with competitors.

After this kind of result, the fund might roll over the BITO shares worth $100M to the new spot Bitcoin exchange-traded fund. Besides, Ark Invest might change its acquired cash from the sale of Grayscale Bitcoin Trust to a newer product. In the meantime, it unloaded shares in other firms, notably several crypto companies. 

Ark Invest Freeing Funds for Spot ETF?

Block shares with a $18.4M valuation and 148,885 Coinbase shares with a $27.5M valuation were sold by the fund manager. Nevertheless, the strategy seems more strategic compared to initiatives to free up additional funds for the spot exchange-traded fund. This is despite the impossibility of totally ruling out the latter.

Earlier, it was reported that discussions between the Securities and Exchange Commission and fund managers aiming to unveil a spot Bitcoin exchange-traded find have moved to closing phases. December 29 marks the deadline for an ultimate amendment, with acceptance anticipated prior to the January 10 decision date. 

Woods earlier hailed that the US SEC for holding fruitful dialogue in its roundtable talks held with various applicants for the spot Bitcoin ETF. Ark Invests executive considers that SEC is likely to approve the spot Bitcoin ETF following a decade of denials.

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