ARK Invest seized an opportunity presented by Bitcoin’s recent resilience, opting to sell $6 million worth of Grayscale Bitcoin Trust (GBTC) shares.
The transaction, involving the offloading of 201,047 GBTC shares from ARK’s Next Generation Internet ETF (ARKW), took place on November 10, News About Nigeria gathered.
The decision to divest comes as GBTC experienced a notable surge, rallying nearly 10% last week and reaching just under $30 per share. Remarkably, the trust has seen an impressive 250% increase in 2023, doubling the growth of Bitcoin itself, which registered a 123% uptick this year.
Despite the sale, GBTC maintains its position as the largest holding in ARKW, constituting 9.97% of the fund and valued at approximately $132 million. The move follows smaller transactions totaling around $5.7 million earlier in the week, showcasing ARK’s strategic adjustments in response to market dynamics.
Grayscale Investments, a subsidiary of CoinDesk parent DCG, secured a legal victory against the U.S. Securities and Exchange Commission (SEC) in August. The win overturned the SEC’s rejection of Grayscale’s application to convert GBTC into a spot Bitcoin exchange-traded fund (ETF).
Last week, the SEC initiated talks with Grayscale regarding the application, adding a positive undertone to the prospect of a spot ETF being listed in the U.S. – a pivotal factor in the recent crypto rally.
Cathie Wood’s ARK Invest’s decision to capitalize on the GBTC surge showcases the fund’s agility and strategic acumen in navigating the ever-evolving landscape of cryptocurrency investments.
