Investment firm ARK is selling shares of Grayscale Bitcoin Trust (GBTC) amid a Market rise driven by anticipation. of a spot BTC exchange-traded fund (ETF).
On October 23, pro-Bitcoin-led ARK (btc) investment veteran cathie wood – sold 100,739 GBTC shares ($2.5 million) from its ARK Next Generation Internet ETF (ARKW), according to a trade notification seen by Cointelegraph.
The transaction comes as GBTC hit multi-month highs, hitting $24.7 for the first time since May 2022. According According to TradingView data, GBTC is up more than 200% year-to-date and almost 30% in the last 30 days.
The GBTC sale marks the first GBTC transaction officially reported by ARK since November 2022, when the the firm added 450,272 GBTC shares valued at $4.5 million for ARKW.
The latest GBTC sale amount represents approximately 2% of the entire GBTC value in ARKW's portfolio, or $122.6 million as of October 23. GBTC is ARKW's largest asset, accounting for 10.4% of the product's exposure, with Coinbase and Roku holdings. followed with 9% and 7.4%, respectively.
According to Bitcoin advocate Samson Mow, ARK's latest GBTC sale may be related to the company awaiting a decision from the United States Securities and Exchange Commission (SEC) regarding its application to list an ETF based in Bitcoin. Grayscale filed a new BTC ETF registration statement with the SEC on October 19, a few days later ARK Modified Its Bitcoin ETF Spot Filing on October 11.
“It makes sense for ARK to sell GBTC now as the discount is getting smaller and they have their own ETF filing pending,” Mow told Cointelegraph.
Related: Grayscale files for a new Bitcoin spot ETF on NYSE Arca
Some online traders have also speculated that if ARK is approved for a spot Bitcoin ETF, the company would likely place its ETF as the first holding in ARKW and divest from GBTC.
$ARKW is the largest owner of $GBTC by PESO at 8.36%. So @JSeyff : If ARK is approved for a spot Bitcoin ETF, they would probably put that ETF in the number one position in ARKW and get rid of GBTC. There is an obscure rule that says if ARK sells GBTC, it has to pay capital gains like... pic.twitter.com/LLv7lDa065
—Jay Dilks (@DilksJay) October 14, 2023
ARK did not immediately respond to Cointelegraph's request for comment.
In addition to selling GBTC, ARK also sold 32,158 Coinbase shares from ARKW and 10,455 Coinbase shares from its ARK Fintech Innovation fund for a total of $3.4 million. The investment firm continued to accumulate Robinhood shares, adding 32,158 worth $300,000 to ARKW on October 23.
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