According to the company’s most recent trade filing, Cathie Wood’s Ark Invest bought $92 million worth of ProShares Bitcoin Strategy ETF (BITO) and sold another 148,885 Coinbase shares on Wednesday, valued at roughly $27.58 million.
On Wednesday, the Coinbase shares were offloaded by the ARK Next Generation Internet ETF (ARKW). This came about following the company’s previous month-long sale of more than $200 million worth of Coinbase shares.
At $185.24, Coinbase’s stock concluded the day 7.67% higher.
This month, the company has been selling a lot of Coinbase shares as it proceeded to adjust its fund weightings in light of the rising stock price. Shares of Coinbase increased 54.6% in the last month. Coinbase is estimated to be worth $32 billion.
For its Next Generation Internet ETF, Ark has sold 231,102 shares of Jack Dorsey’s Block Inc. for a total value of $18.4 million. Block shares saw a day-long gain of 1.82% to close at $79.6. Within the last month, the stock has increased by 32%.
Additionally, the business bought 4,320,928 units of the ProShares Bitcoin Strategy ETF (BITO), an ETF tied to US bitcoin futures.
In an instant, ARK has risen to the position of second-largest Bito stakeholder, but once more, this is only a transitory position. For changes like this, they (and institutions in general) use extremely liquid ETFs, according to a post on X by senior ETF analyst Eric Balchunas of Bloomberg.
Just like that ARK is now the second biggest holder of $BITO, altho again this is a temporary parking spot. They (and institutions generally) use highly liq ETFs for transitions like this. pic.twitter.com/OKSVzL16gA
— Eric Balchunas (@EricBalchunas) December 28, 2023
The U.S. Securities and Exchange Commission may approve Ark Invest’s application for the first-ever spot bitcoin ETF, along with that of a number of other asset managers like Blackrock, Fidelity, and Valkyrie.
Additionally, Ark sold its remaining GBTC positions, according to Balchunas. In answer to an inquiry about GBTC holdings from an X user, Balchunas stated, “All I know is it is not in the holdings file they sent us, see below, 0% weight now.” “However, it makes sense, as that’s probably where the 5% for BITO originated,” he continued.
As of Wednesday, GBTC accounted for 4.28% of the ETF’s weight, according to Ark’s website.
