GBTC? Nah. Cathie Wood's Ark Invest Bets Future On BITO For Explosive Growth

In a notable shift in investment strategy, ARK Investment Management, led by CEO Cathie Wood, has sold its entire remaining position in Grayscale Bitcoin Trust GBTC.

This move is particularly significant as GBTC was the largest holding in ARK's Next Generation Internet ETF ARKW just a month ago.

Bloomberg analyst Eric Balchunas highlighted in a recent tweet that approximately $100 million from the sale was used to purchase shares in ProShares Bitcoin Strategy ETF BITO.

BITO, launched in October 2021, is the first U.S. Bitcoin futures ETF and represents a new avenue for investors to gain exposure to Bitcoin.

This strategic shift by ARK from GBTC to BITO is seen as a liquidity transition tool, maintaining the firm's beta exposure to Bitcoin while potentially transitioning into other ARK funds, such as ARKW or ARK Fintech Innovation ETF (ARKB).

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The decision marks the end of an era for ARK's investment in GBTC, which has been a significant part of its portfolio. Moving to BITO indicates a change in ARK's approach to Bitcoin BTC/USD investment, opting for a futures-based ETF over a trust like GBTC.

GBTC has been a popular investment vehicle for gaining exposure to Bitcoin without directly purchasing the cryptocurrency.

However, it has faced challenges, including trading at a discount to its net asset value.

BITO, on the other hand, offers exposure to Bitcoin futures contracts, which may align more closely with ARK's current investment strategy and objectives.

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Image: Ark Invest.