News broke last week that Cathie Wood’s Ark Invest would be selling $27.6 million worth of its popular GBTC Bitcoin Investment Trust (OTC: GBTC) shares. Bitcoin was also close to its all-time high at the time, having already breached the $43,000 mark. This move comes shortly after Ark Invest’s announcement of its intention to start buying GBTC shares directly on public markets.
Ark Invest has historically been a strong and vocal supporter of Bitcoin, with GBTC being the firm’s premiere ‘thematic investment’ in its five actively managed ETFs. They hint at the firm’s focus on Bitcoin as part of its portfolio and long-term strategy, especially with the recent exclusion of non-digital assets in their funds. Ark Invest’s decision to sell GBTC shares before Bitcoin’s price further appreciated may suggest that the fund already sees sufficient upside in GBTC but is looking to diversify amongst other cryptoassets for portfolio stoutness.
It seems that Ark Invest is showing faith in the long-term prospects of Bitcoin. The fund has indicated that capital for such sales was being redeployed into other cryptocurrency assets which they saw potential in. Ark Invest’s decision to sell is likely to make some waves in the crypto-investment industry and could bring to light the potential of certain alternative digital assets. Other crypto-investment firms will be sure to take note and draw inspiration from Ark Invest’s decision-making process.