ARK Invest Decreases Its GBTC Stake Amid Rising Optimism for Bitcoin ETF

By: Eva Baxter

Cathie Wood's ARK Invest has significantly reduced its holdings in Grayscale Bitcoin Trust (GBTC), offloading over 700,000 shares in just a single month. The sale has taken place amidst increasing enthusiasm for the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission.

ARK’s Next Generation Internet ETF (ARKW) still holds significant GBTC shares worth around $131.8 million. Despite the recent sale, GBTC still represents more than 9% of ARKW’s portfolio. This follows a period of increased value for GBTC shares, seeing growth of more than 16%.

The GBTC discount to net asset value has dropped under 10% for the first time in two years, fueling the market speculation surrounding the approval of the BTC ETF. Grayscale's trust offers investors exposure to Bitcoin without direct ownership.

The ongoing sale of GBTC shares by ARK Invest is interpreted by some market observers as a real-time measure of investor confidence regarding the likelihood of SEC approving a spot BTC ETF in the U.S. At the same time, Bitcoin itself has performed remarkably well, up 125% YTD and nearing $38,000 mid-November, the highest since May 2022.