In a strategic move, ARK Invest, the asset management firm headed by Cathie Wood, has executed sales transactions totaling approximately $181 million in Coinbase and $64 million in Grayscale Bitcoin Trust (GBTC) shares between November 21 and the present, as disclosed in the firm’s ETF trade reports.
The cumulative divestment of nearly $245 million is a noteworthy development, especially given ARK’s history of actively managing its COIN and GBTC holdings to secure profits. These figures were meticulously calculated by Decrypt, utilizing the closing prices of each share during ARK’s reported trades aimed at rebalancing its portfolio.
Cathie Wood, the CEO of ARK Invest, oversees a Bitcoin- and crypto-friendly financial firm boasting $6.7 billion in assets under management. Regularly extolling the virtues of Bitcoin, Wood reiterated its outstanding performance in a recent video on the company’s YouTube channel, emphasizing its 161% surge since the beginning of the year.
ARK Invest traditionally maintains Coinbase and Grayscale Bitcoin Trust holdings within three of its ETFs: The ARK Fintech Innovation ETF (ARKF), Ark Innovation ETF (ARKK), and the ARK Next Generation Internet ETF (ARKW).
Despite the substantial divestment, Wood remains optimistic about Bitcoin’s potential, stating, “Just wanted to show you where Bitcoin is—it’s been the best performing asset this year.” The cryptocurrency has seen a notable 14% increase in the past month, reaching over $44,000 at one point, largely fueled by the heightened anticipation for the approval of a spot Bitcoin ETF as early as January.
While ARK has shed a significant number of shares, the retained holdings have appreciated substantially. For instance, Coinbase shares have surged by 52% in the last 30 days alone. This highlights the effective strategy employed by ARK’s fund managers—buying during market downturns and selling during rallies.
The dynamics of ARK’s investment approach are in line with industry standards, where fund managers capitalize on price differentials between the cost basis and the selling price to maximize returns for investors.
Looking ahead, ARK Invest, in collaboration with 21Shares, aims to expand its product offerings by introducing a spot Bitcoin ETF. Although less publicized than some competitors, the company is actively vying for SEC approval. The latest update to its S-1 filing occurred on Monday, and like other contenders, ARK is anticipating feedback from the SEC in January, marking a pivotal moment in the race for a Bitcoin ETF registration.
