Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
In a notable shift in investment strategy, ARK Investment Management, led by CEO Cathie Wood, has sold its entire remaining position in Grayscale Bitcoin Trust (OTC: GBTC).
This move is particularly significant as GBTC was the largest holding in ARK's Next Generation Internet ETF (NYSE: ARKW) just a month ago.
Bloomberg analyst Eric Balchunas highlighted in a recent tweet that approximately $100 million from the sale was used to purchase shares in ProShares Bitcoin Strategy ETF (NYSE: BITO).
BITO, launched in October 2021, is the first U.S. Bitcoin futures ETF and represents a new avenue for investors to gain exposure to Bitcoin.
This strategic shift by ARK from GBTC to BITO is seen as a liquidity transition tool, maintaining the firm's beta exposure to Bitcoin while potentially transitioning into other ARK funds, such as ARKW or ARK Fintech Innovation ETF (ARKB).
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The decision marks the end of an era for ARK's investment in GBTC, which has been a significant part of its portfolio. Moving to BITO indicates a change in ARK's approach to Bitcoin (CRYPTO: BTC) investment, opting for a futures-based ETF over a trust like GBTC.
GBTC has been a popular investment vehicle for gaining exposure to Bitcoin without directly purchasing the cryptocurrency.
However, it has faced challenges, including trading at a discount to its net asset value.
BITO, on the other hand, offers exposure to Bitcoin futures contracts, which may align more closely with ARK's current investment strategy and objectives.
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Image: Ark Invest.
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