April 19, 2024
Ark Invest's Bold Move: Selling Coinbase and GBTC Shares as Bitcoin Breaks Records
Bitcoin News

Ark Invest’s Bold Move: Selling Coinbase and GBTC Shares as Bitcoin Breaks Records

On Monday, as the most popular cryptocurrency increased by over 10%, long-time Bitcoin bull Cathie Wood decided to sell over $5.8 million in Coinbase and Grayscale Bitcoin Trust (GBTC) shares.

The sale of 42,613 COIN shares through the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF, valued at $3.29 million with the closing price of $77.21 on Monday evening, was disclosed in Ark Invest’s most recent trading information newsletter.

Additionally, the company sold 100,739 shares of Grayscale Bitcoin Trust (GBTC) for $2.48 million at the $24.70 closing price.

The action was taken after the price of Bitcoin hit $34,000, breaking all previous records for 2023.

Ark Invest, which owns more than $130 million in GBTC, is the second-largest stakeholder. GBTC is also the largest holding in ARKW, the company’s fund that attempts to actively engage in internet-based goods and services, cloud computing, artificial intelligence, e-commerce, and media technologies. ARKW has a 10.42% weighted average investment in GBTC. 9.08% of the portfolio of ARKW is made up of COIN.

By Monday’s closing bell, COIN had increased by 130% year-to-date, while GBTC had experienced even more success, rising by 201%.

As news spread that the Securities and Exchange Commission (SEC) was ordered to reconsider Grayscale’s spot Bitcoin ETF application, shares of Grayscale’s flagship Bitcoin fund closed the day up 4.5%.

The ruling pertains to a complaint Grayscale brought against the SEC last year, accusing it of denying its request to convert GBTC into a spot Bitcoin ETF.

When the court ruled that the SEC had failed to “adequately explain” why it had previously allowed the listing of Bitcoin futures ETFs but not Grayscale’s planned product, the investment firm gained a significant win.

The SEC has frequently rejected or delayed applications for spot Bitcoin ETFs, which let investors get exposure to the top cryptocurrency without actually owning the commodity, citing worries about market manipulation.

The SEC may reject the conversion of GBTC to a Bitcoin ETF for other reasons, thus the court’s most recent ruling is not a guarantee that it will be successful. The Depository Trust & Clearing Corporation (DTCC) added a ticker for Blackrock’s iShares Bitcoin Trust (IBTC), another spot Bitcoin ETF that is now awaiting an SEC approval, which helped to further bolster the market as the news broke.

Cathie Wood, the CEO and chief investment officer of Ark Invest, has long been a supporter of Bitcoin and previously forecasted a price objective of $1 million for the most popular cryptocurrency.

The company has filed a second modified application for the proposed product this month as it competes to be the first to market a spot Bitcoin ETF.

Image: Wallpapers.com

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