Cathie Wood Says Bitcoin ETF Approval Threatens Grayscale's Edge
Portfolio Pulse from Benzinga Neuro
Cathie Wood, CEO of ARK Invest, predicts that the approval of a U.S. Bitcoin ETF could challenge the Grayscale Bitcoin Trust's (GBTC) market position. ARK Invest, in partnership with 21 Shares, is awaiting SEC approval to launch a Bitcoin ETF. Wood believes this could introduce more liquid investment options and attract new investors, but also warns of potential profit-taking post-launch. ARK Invest has recently sold $6 million worth of GBTC shares, which Wood attributes to routine profit-taking.
November 16, 2023 | 3:17 am
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The Grayscale Bitcoin Trust could face increased competition and potential market share loss if a U.S. Bitcoin ETF is approved, as suggested by Cathie Wood.
The approval of a Bitcoin ETF in the U.S. would provide a direct competitor to GBTC, offering similar exposure to Bitcoin in a potentially more liquid and accessible format. This could lead to a decrease in demand for GBTC as investors opt for the ETF, negatively impacting GBTC's price in the short term.
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RELEVANCE 90