ARK Invest Dumps GBTC, Pours $100 Million Into Bitcoin ETF

ARK Investment Management, a leading investment firm in disruptive innovation, has moved significantly in crypto. The firm has sold off its entire stake in GBTC (Grayscale Bitcoin Trust), the most significant Bitcoin fund in the world, and reinvested about $100 million into $BITO, the ProShares Bitcoin Strategy ETF.

The news was revealed by Eric Balchunas, a senior ETF analyst, on social media platform X. He explained that ARK Invest used BITO as a liquidity tool to transition from GBTC, which had become ARKW’s top holding a month ago.

Balchunas said ARK Invest aimed to maintain exposure to Bitcoin while shifting its funds into other ETFs under its umbrella, such as ARKW or ARKB. He added that BITO was a temporary parking spot for the firm Invest and that the firm would likely move into other Bitcoin ETFs.

Balchunas also pointed out that ARK Invest’s move was a smart way to boost its ETFs’ assets under management (AUM), which could lower the expense ratios for its investors.

As per Balchunas, the move by ARK Invest was entirely predictable since he had already hinted about it a month ago. After investigation, I discovered that the firm Invest removed GBTC from its possession and transferred the money to buy BITO. Consequently, GBTC is no longer a part of ARK Invest.

About ARK

The firm, led by CEO and CIO Cathie Wood, focuses on long-term growth and thematic investing in fintech, biotech, robotics, and blockchain sectors.

The firm has been very optimistic about the price of Bitcoin and its potential growth. The company has been saying that Bitcoin saves money and protects against inflation. ARK believes that the future of Bitcoin ETFs is promising as it can give more accessibility and liquidity to investors.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.