Following experiences about Cathie Wood’s asset administration agency Ark Invest offloading all of the remaining shares of Grayscale Bitcoin Trust ($GBTC), Bloomberg Intelligence analyst Eric Balchunas knowledgeable that the agency diverted a good portion of the share sale funds to buy ProfessionalShares Bitcoin Strategy ETF ($BITO) inventory.
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Cathie Wood Prioritizing Bitcoin ETF Space
Earlier, CoinGape reported that Cathie Wood bought off your complete holdings of Grayscale GBTC remaining remaining within the Ark Invest portfolio, presumably in anticipation of the spot Bitcoin ETF approval earlier than the January 10, 2024 deadline. Interestingly, GBTC was Ark Invest’s largest holding till just lately. According to information from the Bloomberg analyst, Ark Invest bought all its remaining place in $GBTC solely to briefly place a big a part of the fund in one other Bitcoin ETF inventory, the ProfessionalShares $BITO inventory.
Balchunas revealed that the Cathie Wood firm invested half of the funds, price round $100 million, from GBTC sale to purchase $BITO. This is probably going part of Ark Invest’s technique to have $BITO as a liquid transition software previous to ARK 21Shares Spot Bitcoin ETF ($ARKB) and ARK Next Generation Internet ETF ($ARKW) turning into a actuality. With the funding in $BITO, Ark Invest turned the second largest holder of the ProfessionalShares Bitcoin Strategy ETF inventory.
“Just like that ARK is now the second biggest holder of $BITO, although again this is a temporary parking spot.”
The ARK 21Shares Bitcoin ETF
It was on April 25, 2023 that Ark Invest and 21Shares decided to resubmit the applying for a spot Bitcoin ETF. Prior to this, the U.S. Securities and Exchange Commission’s (SEC) denied a number of purposes for the spot ETF, together with 21Shares’ filings. However, the US regulator has proven indicators of a turnaround in its strategy in the direction of ETFs presumably owing to its loss within the Grayscale lawsuit, wherein the US Court dominated that the SEC evaluate its earlier denial of Grayscale’s ETF software.
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