Ark Invest Shifts from GBTC to BITO amid Bitcoin ETF Hopes

Ark Invest, a leading investment firm in the crypto space, has sold off its entire holdings of Grayscale Bitcoin Trust (GBTC) and bought shares of the newly launched Bitcoin futures ETF (BITO). This move reflects the growing optimism for a spot Bitcoin ETF approval by the US Securities and Exchange Commission (SEC).

Ark Invest Dumps GBTC for BITO

According to the latest trade filings, Ark Invest sold 809,441 GBTC shares worth $27.6 million from its Next Generation Internet ETF (ARKW) on Monday, marking the largest sale in over a year. GBTC is a popular investment vehicle that offers exposure to Bitcoin through a trust structure. However, GBTC has been trading at a significant discount to its net asset value (NAV) for most of this year, indicating a lack of demand and liquidity.

On the same day, Ark Invest bought 214,718 shares of BITO worth $5 million for its Innovation ETF (ARKK). BITO is the first Bitcoin futures ETF to launch in the US, and it has attracted over $1 billion in assets under management (AUM) in its first week of trading. BITO tracks the price of Bitcoin futures contracts on the Chicago Mercantile Exchange (CME), and it charges a 0.95% expense ratio.

Ark Invest has been a vocal supporter of Bitcoin and a proponent of a spot Bitcoin ETF, which would allow investors to buy and sell Bitcoin directly through a regulated exchange. Ark Invest’s CEO, Cathie Wood, has said that a spot Bitcoin ETF approval by the SEC would be the final seal for institutional investors to enter the crypto market.

Ark Invest Continues to Sell Coinbase Shares

In addition to its GBTC sell-off, Ark Invest has also been reducing its exposure to Coinbase, the largest crypto exchange in the US. Ark Invest sold an additional 149,780 Coinbase shares (COIN) totaling $24.2 million from two of its funds on Wednesday, as the stock reached new yearly highs. The sale included 132,782 Coinbase shares ($21.5 million) from its Innovation ETF and 16,998 shares ($2.7 million) from its Next Generation Internet ETF.

Ark Invest has been rebalancing its fund weightings amid a recent surge in COIN’s price. This sale follows a $5.5 million disposal of Coinbase shares on Tuesday, and Ark has sold over $200 million worth of Coinbase stock in the past month. Despite reaching yearly highs, Coinbase shares closed at $161.86 on the day of the sale. Over the past month, Coinbase shares have increased by 60%, and year-to-date, they have risen by 344%. However, the stock is still over 50% below its all-time high of approximately $343, set in November 2021.

Ark Invest Remains Bullish on Bitcoin and Crypto

Despite its sell-off of GBTC and COIN, Ark Invest remains bullish on Bitcoin and the crypto industry as a whole. Ark Invest has invested in several other crypto-related companies, such as Square, PayPal, Twitter, and Robinhood, which offer or plan to offer crypto services to their users. Ark Invest has also partnered with 21Shares, a Swiss-based crypto ETF provider, to apply for a spot Bitcoin ETF in the US.

Ark Invest believes that Bitcoin is a disruptive innovation that has the potential to transform the global financial system and create new opportunities for economic growth and social inclusion. Ark Invest estimates that Bitcoin’s market capitalization could reach $3 trillion by 2025, and $10 trillion by 2030, if it captures 10% of the global gold market and 10% of the global monetary base, respectively.