Cathie Wood's ARK Invests in ProShares Bitcoin ETF After Dumping Grayscale Holdings

ARK Invest bought $9.2 million worth of BITO shares and sold $27.6 million worth of Coinbase stock.


ARK Invest Dumps Grayscale Holdings and Buys ProShares Bitcoin ETF

ARK Invest, the investment fund led by Cathie Wood, has made significant changes to its portfolio. It recently purchased $9.2 million worth of ProShares Bitcoin Strategy ETF (BITO) shares. This comes after the fund sold off its remaining holdings of the Grayscale Bitcoin Trust (GBTC).

The purchase of BITO shares represents a shift in ARK Invest's strategy towards more direct exposure to Bitcoin through ETFs. In addition to buying BITO shares, the fund also sold $27.6 million worth of Coinbase (COIN) stock. Furthermore, it acquired 20,000 shares of the Ark 21Shares Active Bitcoin Future Strategy ETF.

These moves reflect ARK Invest's anticipation of potential regulatory approval for spot Bitcoin ETFs in the U.S. Both Grayscale and Ark 21Shares have filed applications with the Securities and Exchange Commission, which is currently reviewing the proposals.

ProShares Bitcoin Strategy ETF Becomes a Significant Holding

The ProShares Bitcoin Strategy ETF, launched in October 2021 as the first U.S. bitcoin-linked ETF, has quickly become a significant holding for ARK Invest. It now accounts for 5.03% of the ARK Next Generation Internet ETF (ARKW), making it the sixth-largest holding in the fund.

Meanwhile, the fund has completely divested its GBTC holdings, with the last reported sale occurring on December 20. Although ARK Invest has reduced its Coinbase holdings, the cryptocurrency exchange remains the largest holding in the fund, accounting for just under 12%.

These changes in holdings could have implications for ARK Invest's exposure to different Bitcoin investment vehicles, depending on the SEC's decision on spot Bitcoin ETFs. The fund's actions suggest a desire to adapt its portfolio to the evolving regulatory landscape.

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Sheldon Reback, based in London, is a CoinDesk news editor who played a role in covering the story discussed in this article.