GBTC? Nah. Cathie Wood's Ark Invest Bets Future On BITO For Explosive Growth
Portfolio Pulse from Murtuza Merchant
ARK Investment Management, led by Cathie Wood, has sold its entire stake in Grayscale Bitcoin Trust (GBTC) and invested approximately $100 million into ProShares Bitcoin Strategy ETF (BITO). GBTC was previously the largest holding in ARK's Next Generation Internet ETF (ARKW). The shift to BITO, the first U.S. Bitcoin futures ETF, aligns with ARK's investment strategy and offers exposure to Bitcoin futures contracts, as opposed to GBTC which offers exposure to Bitcoin directly and has been trading at a discount to its net asset value.
December 28, 2023 | 9:06 pm
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POSITIVE IMPACT
ARK Investment Management has purchased approximately $100 million in shares of ProShares Bitcoin Strategy ETF (BITO), indicating a strategic shift to Bitcoin futures exposure.
The investment in BITO suggests ARK's confidence in the ETF's alignment with their investment strategy. This could potentially lead to increased investor interest and a positive short-term impact on BITO's price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
ARK Investment Management may transition funds from the sale of GBTC into other ARK funds like ARK Fintech Innovation ETF (ARKB).
The potential transition of funds into ARKB could be neutral in the short term as it is not clear how much of the proceeds from the GBTC sale will be allocated to ARKB and how this will affect its performance.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 50
NEUTRAL IMPACT
ARKW, ARK's Next Generation Internet ETF, has seen its largest holding, GBTC, completely sold off by ARK Investment Management.
While the sale of GBTC represents a significant change in ARKW's holdings, the impact on ARKW's price is uncertain as the fund may benefit from reallocating to assets that align better with ARK's current strategy.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
ARK Investment Management has sold its entire position in Grayscale Bitcoin Trust (GBTC), which was once the largest holding in its ARKW ETF.
ARK's divestment from GBTC could be seen as a lack of confidence in the trust's structure, especially given its recent trading at a discount to net asset value. This may lead to a negative short-term impact on GBTC's price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80