ARK Invest sold $5M in shares of GBTC (Grayscale Bitcoin Trust) last week and this has increased the optimism regarding the Spot Bitcoin ETF approval.
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ARK Invest sold $5M in shares of GBTC
Last week, ARK Invest, led by Cathie Wood, sold an additional 163,722 shares of the Grayscale Bitcoin Trust (GBTC), generating $5.02 million at closing prices. This move coincided with a narrowing discount for Grayscale’s Bitcoin investment vehicle, reaching its lowest point in over two years.
Spot Bitcoin ETF
The increased optimism regarding the approval of a spot bitcoin ETF in the U.S. was reflected in this diminished discount.
In November, the Next Generation Internet ETF (ARKW) reduced its total shares by 579,077, resulting in approximately $16.9 million in earnings based on the closing share prices on the relevant days.
ARK Invest has a strategy of accumulating crypto-related shares during downturns and selling them when they appear more bullish to capitalize on profits.
Discount on GBTC
The discount for the Grayscale Bitcoin Trust contracted to 8.6% on Friday, marking its lowest level since July 2021. This reduction is seen as a positive indicator, signaling increasing confidence that a spot bitcoin exchange-traded fund (ETF) may receive approval in the U.S.
Analysts attribute this improvement to Grayscale’s discussions with the Securities and Exchange Commission (SEC) regarding the transformation of the trust into a spot ETF. It’s worth noting that the discount had reached a record low of nearly 50% in December of the previous year.
Conclusion
To conclude, ARK Invest selling $5M in shares of Grayscale Bitcoin Trust has increased the optimism towards the Bitcoin ETF approval. Investors are positive that the chances of ETF approval are higher but it is necessary to monitor the market closely.
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