In a recent transaction, Cathie Wood’s ARK Invest has made a significant sale of Grayscale Bitcoin Trust (GBTC) shares from its Next Generation Internet (ARKW) exchange-traded fund (ETF). This move, representing the largest sale in over a year, involves the divestment of approximately $12.85 million worth of GBTC shares. As a result, ARKW now holds about $112.7 million in GBTC, representing a 6.95% weight in the fund.
The sale occurs in a context where the value of Grayscale’s bitcoin investment vehicle has just experienced an 8.6% decline, reaching $32.46 on Monday. This decline reflects the 5.8% drop in the value of Bitcoin, the largest cryptocurrency by market capitalization. BTC underwent a price retracement in the last day. Dropping to $40,540 after reaching a peak of $44,550, the highest in the last 20 months. Despite the fall, at the time of writing this article and following a slight recovery, Bitcoin is trading at $41,723 according to the latest data published on CoinMarketCap.
Ark Invest Seeks to Diversify Its Portfolio to Protect Investments
ARK Invest’s strategy imposes a 10% limit on the weight of any individual asset within its exchange-traded funds. Therefore, the recent sale aligns with this policy, ensuring a diversified portfolio within the ARKW ETF.
Grayscale, the digital asset management firm, aims to convert the Bitcoin Trust into a spot bitcoin ETF in January. The U.S. Securities and Exchange Commission (SEC) is scheduled to make a decision on this application. Along with 13 other firms, early next year, likely around January 10.
In addition to GBTC shares, ARK Invest also sold Coinbase (COIN) shares worth $1.88 million on the same day. This follows a larger sale of over $100 million worth of Coinbase shares the previous week.
The transactions carried out by ARK Invest are part of its active portfolio management strategy. Adjusting holdings in response to market conditions and maintaining a focus on diversification. The movements suggest a tactical shift to rebalance the portfolio and manage exposure to certain assets amid market fluctuations.
