Last week, Cathie Wood’s ARK Invest engaged in a significant selling spree of 163,722 shares from Grayscale Bitcoin Trust (GBTC), resulting in a handsome $5.02 million return at closing prices. This move coincided with a noteworthy development as the investment vehicle’s discount in relation to its net asset value tightened, marking the narrowest margin observed in more than a span of two years.
In the scope of November, the sales executed by the Next Generation Internet ETF (ARKW) led to a cumulative reduction of 579,077 shares. This transaction garnered an estimated sum of approximately $16.9 million based on the day’s pertinent closing share price. Interestingly, the discount trend underwent a contraction, reaching 8.6% by the end of Friday—a significant dip and the lowest level recorded since July 2021. This diminishing discount signals a mounting optimism within the market regarding the imminent approval of a spot bitcoin exchange-traded fund (ETF) within the United States.
Analysts attribute this positive shift to Grayscale’s recent meeting with the Securities and Exchange Commission (SEC) to explore the transformation of the trust into a spot ETF. Notably, this discount had plummeted to an alarming nearly 50% in December of the previous year, making the current reduction a significant turnaround.
The sales conducted by ARK Invest coincide with the ongoing decrease in the discount observed in Grayscale’s bitcoin investment vehicle, which now stands at its lowest point in over two years. This collective movement reflects the growing optimism and anticipation surrounding the potential approval of a spot bitcoin ETF within the U.S. market.
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