2023-11-24 18:52 |
Cathie Wood’s asset management firm ARK Invest sold more than 700,000 shares of its Grayscale Bitcoin Trust (GBTC) holding in the past month amid the rapid closure of the fund’s discount.
Data from Cathies Ark, a website monitoring the daily trades of ARK, showed that the firm’s Next Generation Internet ETF (ARKW) offloaded 724,043 units of GBTC shares between Oct. 23 and today, Nov. 24. The firm is estimated to have earned more than $10 million from these sales.
During this period, GBTC shares value grew by more than 16% to as high as $30.85 today, Nov. 24, according to Tradingview data. This was fueled by the market optimism surrounding the possibility of the U.S. Securities and Exchange Commission (SEC) approving a spot Bitcoin (BTC) exchange-traded fund (ETF).
Grayscale is one of the numerous asset managers, including BlackRock, who have a pending application with the financial regulator.
Despite these rapid selling activities, GBTC remains one of ARKW’s largest holdings, representing more than 9% of its portfolio, behind only crypto exchange Coinbase and advertising technology firm Roku.
GBTC discount falls under 10%GBTC’s discount to net asset value (NAV) has fallen under 10% for the first time in the last two years, according to Coinglass data.
GBTC is one of the largest BTC investment options globally, holding over 620,000 BTC valued at over $23 billion. It offers investors exposure to the top crypto asset without direct ownership.
In 2021, a discount arose due to shareholders being unable to redeem their shares. This discount expanded to nearly 50% in 2022 before narrowing to about 40% earlier this year.
However, the situation changed notably after BlackRock submitted an application for a spot BTC ETF in June, sparking heightened institutional interest in the market.
Since then, the discount has significantly decreased. Market observers have suggested that the metric serves as a real-time gauge of investors’ confidence regarding the likelihood of the SEC approving a spot BTC ETF in the U.S.
The post Cathie Wood’s ARK Invest cashes out part of its Grayscale’s GBTC stake as Bitcoin ETF optimism grows appeared first on CryptoSlate.
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