Ark Invest Sells Shares In GBTC And Coinbase As Crypto Market Rises

Ark Invest Sells Shares In GBTC And Coinbase As Crypto Market Rises

On Monday, Cathie Wood, the long-time Bitcoin bull, offloaded shares in Coinbase and Grayscale Bitcoin Trust (GBTC) worth $5.8 million, as there was a 10% rise in the price of the leading cryptocurrency.

The latest trade information newsletter from Ark Invest revealed that a total of 42,613 Coinbase shares through ARK Fintech Innovation ETF and ARK Next Generation ETF were sold.

The closing price of Coinbase shares on Monday evening was $77.21, which put the value of the sale at $3.29 million.

The sale

In addition, a total of 100,739 shares of Grayscale Bitcoin Trust (GBTC) were also sold, which had a closing price of $24.70 and this put the total value of the sale at $2.48 million.

This move came as the value of Bitcoin, the pioneer cryptocurrency, rose past $34,000, which is a record high for this year.

Ark invest holds almost $130 million in GBTC and it is the trust’s second-largest shareholder. GBTC is also the top holder in Ark Invest’s fund, ARKW, as it has a weight of 10.42%.

The fund invests actively in cloud computing, internet-based products and services, e-commerce, artificial intelligence and media innovations. Coinbase shares make up about 9.08% of its portfolio.

Bitcoin ETF anticipation

There was a 130% rise in Coinbase’s share price since the beginning of the year by the time the markets closed on Monday.

The gains for GBTC were even more spectacular at about 201% year-to-date (YTD). On Monday, Grayscale’s flagship Bitcoin fund saw its shares rise 4.5%.

This was after the Securities and Exchange Commission (SEC) was compelled by the U.S. Court of Appeals to revisit the spot Bitcoin ETF application that Grayscale had submitted.

The judgement is related to the lawsuit filed against the SEC by Grayscale last year, as the former had refused to permit the latter to convert its GBTC into a spot Bitcoin ETF.

In August, the investment company had been handed a landmark victory when the court stated that the SEC did not provide an adequate explanation for not approving Grayscale’s request.

The controversy

The SEC has given approval for Bitcoin futures ETF, but refuses to do the same for spot Bitcoin ETFs. It has cited concerns of market manipulation.

The regulatory agency has repeatedly postponed or rejected spot Bitcoin ETF applications that would enable investors to gain exposure to Bitcoin without actually having to hold the asset.

However, it should be noted that the court’s latest decision is not a guarantee that GBTC would be converted to a spot Bitcoin ETF, as the SEC can still turn it down on other grounds.

But, there was an upswing in the market once the news hit and it also got a boost because a ticker was listed by the Depository Trust & Clearing Corporation (DBTC) for BlackRock’s spot Bitcoin ETF.

BlackRock has also submitted its application to the SEC for a spot Bitcoin ETF named iShares Bitcoin Trust (IBTC) and is now awaiting a decision.

Ark Invest has also submitted its own application for the investment product.