As the long-awaited deadline for bitcoin Spot ETF applications approaches, Ark Investment Management, led by cathie wood has sold all of its Grayscale bitcoin Trust (GBTC) holdings.
Ark Invest bitcoin Investment Strategy Change
Eric Balchunas, ETF analyst at Bloomberg Intelligence, recently reported development on X (formerly Twitter) on Thursday, December 28. According to him, this strategic move came a month after Grayscale bitcoin Trust (GBTC) became ARKW's largest holding company.
Ark Invest's sale of its entire GBTC could be due to the anticipation of the bitcoin Spot Exchange Traded Fund (ETF) Approval before the deadline of January 10, 2024.
The Bloomberg analyst also noted that Ark Invest used half of the money worth $100 million to buy BITO, the ProShares bitcoin Strategy ETF. This move to the BITO – ProShares ETF, which was introduced in October 2021, signifies a fundamental change in its investment approach.
Balchunas noted that the change is likely part of the company's plan to use BITO as a liquid transition tool. This will maintain beta for bitcoin before the ARK Next Generation Internet ETF ($ARKW) and ARK 21Shares bitcoin Spot ETF ($ARKB) are launched.
With the investment in BITO, Ark Invest has risen to the position of the second largest owner of shares in the Proshares bitcoin Strategy ETF. However, the Bloomberg analyst pointed out that “it is a temporary parking space.”
Furthermore, Balchunas highlighted how institutional investors often carry out these types of transitions. “They (and institutions in general) use highly liquid ETFs for transitions like this,” he said.
The analyst also noted that the predictions made a month ago have come true. He emphasized that in addition to being strategic, this move also aims to increase the assets under management (AUM) of its ETFS.
As a result of this, your investors will potentially benefit from their investments by optimizing expense ratios. “It's better to give your own ETF a nice boost and at the same time save your investors a big investment ratio,” he said.
Grayscale Adjustments to Its btc Spot ETF Filing
Grayscale, one of the largest asset management companies has filed an updated S-3 for its bitcoin spot ETF. James Seyffart, Bloomberg analyst shared information with the crypto community on X
The asset management firm filed the updated document Dec. 26 with the U.S. Securities and Exchange Commission. (SECOND). In the updated filing, Grayscale will now only accept cash orders for its ETF investments, while implementing the cash-only policy.
The presentation said:
At this time, an Authorized Participant may only submit Cash Orders, pursuant to which Authorized Participants will deposit cash or accept cash from the Cash Account in connection with the creation and redemption of Baskets.
Until now, this move was made by the company to maintain its lead in the btc spot ETF race.
Featured image from iStock, chart from Tradingview.com
