ARK Invest, known for investing in cryptocurrency companies and technology products, sold all of its GBTC assets and purchased a $100 million Bitcoin futures ETF. Experts say the acquisition is a strategic step forward for the company’s ETF products ahead of the Bitcoin Spot ETF decision.
ARK Invest, led by Cathie Wood, sold all of its GBTC holdings. The company had been selling GBTC shares along with Coinbase shares for a while, and at the same time canceled all assets in the Grayscale Bitcoin fund.
BITO Bought with 100 Million Dollars
ARK Invest purchased the ProShares Bitcoin Strategy ETF (BITO), the largest Bitcoin futures ETF in the United States, with funds from GBTC shares.
Bloomberg analyst Eric Balciunas called the acquisition a transitional move.
“Today, ARK Invest sold all remaining assets in its GBTC position, which was the largest holding of the ARKW fund until a month ago. BITO was purchased for half the price, approximately $100 million. “This is a transitional phase to protect your funds.” Bitcoin investment… ARK is currently the largest BITO holding company, but as we mentioned above, such companies will purchase ETFs with excess liquidity during the transition phase.
“Can Be Used to Fund and Strengthen ARKB”
Balchunas also shared an earlier tweet explaining that this could be a move by ARK Invest to strengthen its Bitcoin ETF.
“We actually predicted this a month ago and we think it’s a smart move. “This is a good step to strengthen our ETF and protect our investors…”
Balchunas and James Seifert, two Bloomberg ETF analysts, wrote in a report about a month ago that ARK Investments sold GBTC shares, pushing the ARK 21-share Bitcoin ETF (ARKB) to the top of the Bitcoin ETF race.
