Cathie Wood's ARK Invest Liquidates Grayscale Bitcoin Trust Holdings Valued at Almost $13 Million

Grayscale, a manager specializing in digital assets, observed an 8.6% decrease in the shares of its bitcoin investment vehicle on Monday, coinciding with the 5.8% fall in the value of bitcoin on the same day. In a noteworthy development, ARK Invest, led by Cathie Wood, executed a significant sale, divesting approximately $12.85 million worth of shares from the Grayscale Bitcoin Trust (GBTC). This transaction, involving the Next Generation Internet (ARKW) exchange-traded fund (ETF), stands as the largest sale in over a year.

The substantial liquidation involved the sale of 395,945 GBTC shares from ARKW, resulting in the fund retaining about $112.7 million worth of GBTC, constituting a 6.95% weighting. ARK Invest adheres to a strategic approach where no single holding within its ETFs surpasses a 10% weighting relative to the fund's total market value.

Concurrently, the bitcoin investment vehicle managed by Grayscale witnessed an 8.6% decline, settling at $32.46 on Monday, reflecting the broader 5.8% downturn in the value of the leading cryptocurrency by market capitalization.

Looking forward, Grayscale has aspirations to convert the Bitcoin Trust into a spot bitcoin ETF in January. The fate of this initiative, alongside applications from 13 other firms, hinges on the decision of the U.S. Securities and Exchange Commission, anticipated in the early part of the new year.

In addition to the divestment of GBTC shares, ARK Invest also liquidated $1.88 million worth of Coinbase (COIN) shares on Monday. This action follows last week's substantial sale of over $100 million in Coinbase stock, signaling a sequence of strategic adjustments to ARK Invest's portfolio in the dynamic landscape of cryptocurrencies and digital assets.

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