Cathie Wood’s ARK Next Generation Internet ETF has made a significant move by offloading its entire stake in the Grayscale Bitcoin Trust (GBTC) ahead of the U.S. Securities and Exchange Commission’s (SEC) decision on Bitcoin exchange-traded funds (ETFs). This decision comes as the SEC is set to make a crucial ruling on the conversion of the Grayscale Bitcoin Trust into an ETF in early January.
According to a report by Bloomberg, Wood’s fund sold the remaining 2.25 million GBTC shares on Wednesday. Instead, it acquired 4.32 million shares of the ProShares Bitcoin Strategy ETF (BTC/USD), becoming the fund’s second-largest holder. This move was made “out of an abundance of caution” in case the Grayscale Trust’s conversion to an ETF does not receive regulatory approval.
Wood expressed optimism about the chances of the SEC approving a Spot Bitcoin ETF in January, as both ARK Invest and 21Shares have pending applications with the SEC. However, she cautioned that approval is not guaranteed.
This is not the first time ARK’s portfolio has undergone adjustments in response to the evolving cryptocurrency market. Earlier in December, the fund sold $12.8 million worth of Grayscale Bitcoin Trust shares amid fluctuating cryptocurrency prices. In the third week of December, the fund also sold GBTC units and purchased shares of Block Inc (SQ).
Wood’s decision to sell the GBTC shares and acquire shares of the ProShares Bitcoin Strategy ETF reflects her cautious approach towards the regulatory landscape surrounding cryptocurrency investments. With the SEC showing increased engagement on the matter, Wood believes the probabilities of approval have risen.
It is worth noting that Wood’s funds have been at the forefront of investing in disruptive technologies and have gained significant attention in recent years. The ARK Next Generation Internet ETF focuses on companies involved in areas such as cloud computing, e-commerce, and artificial intelligence. Wood’s investment strategies have made her one of the most influential figures in the investment world.
As the SEC’s decision on Bitcoin ETFs draws closer, the market will closely watch for any developments. If approved, a Bitcoin ETF would open up new avenues for investors to gain exposure to the cryptocurrency market. However, until then, investors like Wood are taking precautions to navigate the changing regulatory landscape.
