Cathie Wood’s ARK Invest, a prominent investment firm known for its bullish stance on Bitcoin and other disruptive technologies, has further reduced its holdings of the Grayscale Bitcoin Trust (GBTC) as the crypto asset’s price nears $43,000 and the trust’s discount to net asset value narrows.
According to a disclosure filed on December 18, ARK Invest’s Next Generation Internet ETF (ARKW) sold 809,441 shares of GBTC for approximately $28 million. This latest divestment follows a series of similar sales throughout the year, bringing ARK Invest’s total GBTC holdings down from a high of around 9 million shares in July 2021 to 3.4 million shares as of today.
Despite the sale, ARK Invest remains in profit on its GBTC investment, having purchased the shares at an average price of $24.08 compared to the current market price of $34.54. The sale coincides with a recent recovery in Bitcoin’s price, which has climbed almost 50% since its November lows.
According to Santiment, an analytical platform, last week saw a rise in market fatigue, leading to a surge of negative posts about the top cryptocurrency on Friday. However, Monday brought with it a renewed sense of optimism, as traders appeared to overcome their fears and adopt a more positive outlook.
Meanwhile, ARK Invest has also shown renewed interest in other parts of the digital asset space. The firm revealed a $26 million purchase of shares in Block (SQ), formerly known as Square, on Monday. Block, led by Jack Dorsey, offers crypto payments through its Cash App and recently unveiled a new self-custody Bitcoin wallet.
Cathie Wood has recently sold shares of Coinbase and GBTC as their prices hit a 52-week high. In addition to this, Ark Invest has also unloaded Robinhood shares for the first time in two months. InnovatekMobile, a crypto analyst, tweeted on X about the various shares sold by Ark Invest.
The move suggests that while ARK Invest is dialing back its exposure to Grayscale’s Bitcoin Trust, it remains interested in the broader crypto ecosystem. It potentially sees emerging opportunities in areas like self-custody solutions and payments.
