Cathie Wood's Ark Invest Makes Bold Move: Sells off $GBTC for $BITO - What's the Strategy?

EddieJayonCrypto

 28 Dec 23

tl;dr

Cathie Wood's Ark Invest sold off its remaining stocks of Grayscale Bitcoin Trust ($GBTC) and used a significant portion of the share sale funds to purchase ProShares Bitcoin Strategy ETF ($BITO) stock. This strategy is part of their plan to use $BITO as a transition tool before the ARK 21Shares Spo...

Cathie Wood's Ark Invest sold off its remaining stocks of Grayscale Bitcoin Trust ($GBTC) and used a significant portion of the share sale funds to purchase ProShares Bitcoin Strategy ETF ($BITO) stock. This strategy is part of their plan to use $BITO as a transition tool before the ARK 21Shares Spot Bitcoin ETF ($ARKB) and ARK Next Generation Internet ETF ($ARKW) become a reality. The decision to resubmit the application for a spot Bitcoin ETF was influenced by the U.S. Securities and Exchange Commission's (SEC) denial of previous spot Bitcoin ETF applications.

Bloomberg Intelligence analyst Eric Balchunas revealed that Ark Invest diverted half of the funds, approximately $100 million, from the sale of $GBTC to purchase $BITO. This is seen as part of their strategy to temporarily hold $BITO before their other Bitcoin ETFs become available. The U.S. Securities and Exchange Commission's denial of previous spot Bitcoin ETF applications has prompted both Ark Invest and 21Shares to resubmit their application for a spot Bitcoin ETF on April 25, 2023, in a bid to navigate the regulatory landscape and offer the potential for a successful outcome.

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This is not financial advice. Please do your own research before investing in any asset.