In a strategic move, Cathie Wood’s ARK Invest, a major Bitcoin whale, has once again adjusted its portfolio, this time reducing its holdings in the Grayscale Bitcoin Trust (GBTC). As the discount to net asset value narrows and Bitcoin (BTC) approaches the $43,000 mark, ARK Next Generation Internet ETF (ARKW) announced the sale of a significant number of GBTC shares, signaling a calculated shift in investment strategy.
ARKW sold 809,441 GBTC and earned $28 million
According to the latest statements, ARKW sold 809,441 GBTC shares worth approximately $28 million. This move reflects a strategic decision by ARK Invest to take advantage of market conditions as the discount to GBTC’s net asset value narrows. The sale also marks a significant reduction from ARKW’s peak GBTC holdings of approximately 9 million shares in July 2021.
The sale brings ARKW’s remaining GBTC shares to 3.4 million, with a current valuation of $117.4 million. This significant reduction in assets demonstrates ARK Invest’s approach to managing its cryptocurrency portfolio in the face of evolving market dynamics. ARKW’s decision to exit GBTC shares appears to have paid off, as the investment firm initially purchased the shares at an average cost of $24.08. While GBTC is currently trading at $34.54, ARKW has successfully profited from this strategic move. This demonstrates ARK Invest’s ability to navigate the volatile cryptocurrency market to maximize returns for its investors.
Bitcoin price is rising
As Bitcoin continues its rise, trading above $42,900, ARK Invest’s reallocation of assets represents a response to market trends. The 17% increase in Bitcoin’s value in the last 30 days seems to have influenced ARKW’s decision-making process. Thus, it has aligned its investment strategy with the evolving cryptocurrency environment.
In addition to reducing its exposure to GBTC, ARK Invest has also shown confidence in other sectors of the market. The firm recently invested $26 million in shares of Jack Dorsey’s fintech company Block (SQ). Along with Square’s emphasis on crypto payments through its Cash App and the introduction of a new self-custody Bitcoin wallet, ARK Invest’s various portfolio adjustments reflect a forward-thinking approach to the rapidly evolving financial technology space.
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