ARK Invest Offloads $5M in Grayscale Bitcoin Trust Shares

• ARK Invest Unloads More Grayscale Bitcoin Trust Shares
• ARK Invest Reduces Holdings in GBTC
• November Total Sales
• Investment Strategy
• Decreasing GBTC Discount
• Potential ETF Conversion Implications

ARK Invest Unloads More Grayscale Bitcoin Trust Shares

ARK Invest Reduces Holdings in GBTC

Last week, ARK Invest, helmed by Cathie Wood, continued its sell-off of shares in Grayscale Bitcoin$42,260 -0.64% Trust (GBTC). The firm sold a further 163,722 shares, resulting in a profit of $5.02 million based on the closing prices. This sale was significant because it occurred while the discount of the investment vehicle to its net asset value was the smallest it has been in over two years.

November Total Sales

Within November, the number of shares dropped by the Next Generation Internet ETF (ARKW), operated by ARK Invest, reached 579,077. These sales have resulted in approximately $16.9 million in earnings, determined by the closing share price on the respective days of each sale.

Investment Strategy

ARK Invest has been known to heavily invest in crypto-related shares during periods of downward trends. Later, the firm often sells these shares when the market appears more bullish, allowing them to secure some profits.

Decreasing GBTC Discount

The GBTC discount dwindled to 8.6% last Friday, marking the smallest rate since July 2021. This decrease suggests growing anticipation that a spot bitcoin exchange-traded fund (ETF) will soon be approved in the United States. Market analysts have linked this positive shift to a meeting held between Grayscale and the Securities and Exchange Commission (SEC) about converting the trust into a spot ETF. Last December, the GBTC discount hit a record low, falling nearly 50%.

Potential ETF Conversion Implications

If the ETF conversion is approved, the Grayscale Bitcoin Trust could potentially experience outflows of up to $2.7 billion, according to a report by JPMorgan.

Edited by Jonathan Stoker