Ark Dumps GBTC And Coinbase Shares

While Ark may be selling GBTC, the increase in price means it accounts for a larger percentage of the fund's portfolio.

Is this a routine portfolio adjustment, or is something else going on?

Ark Invest, Cathie Wood's tech-focused fund, has recently been making moves in the crypto space.

As Coinbase's share price has recovered from its crushing low, Ark has offloaded some of its holdings, selling almost 44,000 shares for a total of $5.3 million.

COIN bottomed out below $32 in January this year, and has since rallied strongly, climbing as high as $120. Ark has been reducing its exposure as the share price rises, selling over $100 million-worth as it hit $90 earlier this year.

Selling GBTC

Moreover, Ark has been selling its shares in the Grayscale Bitcoin Trust (GBTC), recently dumping almost 95,000 shares for roughly $3 million.

Neither of these developments suggest that Ark is leaving the crypto space, however, since it maintains numerous other blockchain-related investments, including taking stakes in crypto-friendly finance platforms SoFi and Robinhood.

One interpretation of these events is that Ark is preparing for the approval of its own spot bitcoin ETF. Until now, GBTC has provided the best alternative to a true ETF. Should Ark's bid be greenlit by the SEC, there would be no reason to hold GBTC. Additionally, the "Grayscale discount" has decreased in recent months, as arbitrageurs bet on GBTC's conversion to an ETF.

Alternatively, as ETF expert Eric Balchunas comments, this may simply be a routine re-weighting of Ark's portfolio.

It's also possible that Ark is seeking to diversify risk away from Coinbase, which will have a pivotal role in providing infrastructure for ETFs, by focusing on other companies that provide access to crypto. However, Coinbase's increasing share price has also presented an obvious opportunity for Ark to take profits.


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