Cathie Wood’s ARK Invest Ditches GBTC for ProShares BITO

Published by

Elena R

December 28, 2023

Under the leadership of Cathie Wood, ARK Invest has made a significant change in its crypto investment strategy. Instead of Grayscale Bitcoin Trust (GBTC), ARK has invested a large amount in the ProShares Bitcoin Strategy ETF (BITO).

Let’s break down this decision.

A (Strategic) Shift in Investment Focus

Until recently, GBTC was a major part of ARK Invest’s portfolio. However, ARK has now sold its GBTC shares. Around $100 million from this sale has been moved to BITO. This move has made ARK the second-largest holder of BITO, at least for the time being.

Eric Balchunas, an ETF expert, describes this change as a ‘liquid transition tool.’ By moving to BITO, ARK keeps its connection to Bitcoin’s performance. Additionally, it prepares for the launch of two of its ETFs: the ARK 21Shares Spot Bitcoin ETF (ARKB) and the ARK Next Generation Internet ETF (ARKW).

Also Read: Is Cathie Wood Losing Faith in Bitcoin? Ark Invest Dumps Holdings

But Why Choose BITO?

One advantage of BITO is its high liquidity. This means ARK can make quick decisions based on market changes. It’s clear that ARK’s move to BITO isn’t just about changing investments. It’s about staying adaptable in a changing market and regulatory environment.

ARK’s move to BITO is also a step towards launching ARKB and ARKW. In partnership with 21Shares, ARK has re-applied for a spot Bitcoin ETF on April 25, 2023. This follows previous challenges with the U.S. Securities and Exchange Commission (SEC). However, recent events, including a key ruling about Grayscale, suggest the SEC might be more open to crypto ETFs.

The Landscape is changing!

The SEC’s recent actions, especially regarding Grayscale, indicate a possible shift in how it views crypto ETFs. This could mean more opportunities for crypto-based ETFs like ARK’s proposed ARKB. Investors might soon have regulated options to invest in digital assets.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.