Cathie Wood’s Ark Invest has offloaded a considerable number of shares in both Coinbase Global Inc and Grayscale Bitcoin Trust. This move comes at a time when Bitcoin and other cryptocurrencies are experiencing significant gains. According to an update from Ark Invest’s trading desk, Ark’s Next Generation Internet ETF (ARKW) sold 32,158 shares, and the Ark Fintech Innovation ETF sold 10,455 shares of Coinbase. Additionally, ARKW also sold 100,739 shares of the Grayscale Bitcoin Trust. At the current market prices, these transactions were valued at approximately $5.8 million.
Bitcoin ETFs in the spotlight
Moreover, Bitcoin is currently trading at around $34,000, marking a 20% increase over the last seven days, according to CoinGecko data. Anticipation is building around the potential approval of spot bitcoin ETFs, and Ark Invest itself has filed for a spot bitcoin ETF approval with the SEC in partnership with 21Shares. Concurrently, BlackRock’s highly anticipated iShares Bitcoin Trust appeared on a list maintained by the Depository Trust and Clearing Corporation, implying that approval may soon be forthcoming. However, it’s noteworthy that the SEC has postponed the review of all pending spot bitcoin ETF applications, adding at least another month to the ongoing evaluation process.
Ark Invest’s move to sell shares has captured attention due to the prevailing bullish sentiment in the crypto market. Specifically, Bitcoin surged to over $35,000 recently, and its price hike is said to be connected with the buzz around the potential approval of spot Bitcoin ETFs. Additionally, last month, Coinbase CEO Brian Armstrong confirmed the implementation of Bitcoin’s Lightning Network to enhance transaction speed and cost-efficiency. Cathie Wood had lauded this decision, underscoring the Lightning Network’s potential to offer quicker and more affordable transactions for Coinbase’s extensive user base.
It’s significant to mention that Wood has previously expressed confidence in Grayscale Investments, highlighting its commitment to cold storage for securing its Bitcoin assets. Hence, the sell-off of Grayscale shares along with Coinbase’s marks a notable shift in Ark Invest’s strategy. However, these sales were worth a fraction compared to Ark Invest’s total assets under management, which makes the move even more intriguing. Consequently, investors are keen to understand the motivation behind Ark’s decision, especially when the crypto market is on an uptick.
Ark Invest made another noteworthy move by trading Grayscale Bitcoin Trust shares valued at $2.5 million. The transaction saw 100,739 shares of Grayscale being sold, according to updates from Ark Invest. While some market observers might view this as a sign of cautious optimism, others might interpret it as Ark taking a more conservative stance amid market fluctuations.