ARK Investment Management, led by prominent investor Cathie Wood, has made significant changes to its holdings in the Grayscale Bitcoin Trust (GBTC) despite Wood’s bullish outlook on Bitcoin. Throughout October and into November, ARK’s Next Generation Internet ETF has been selling off shares of GBTC, totaling over 700,000 shares since October 23, with an additional 36,168 shares offloaded on Wednesday.
Bitcoin’s Performance and Regulatory Uncertainties
This reduction in holdings may come as a surprise, considering the recent surge in Bitcoin prices. Bitcoin reached its highest level since May 2022 earlier this month. Despite regulatory uncertainties and actions against key figures in the crypto space, including Binance’s Changpeng “CZ” Zhao and FTX’s Sam Bankman-Fried, Bitcoin has more than doubled in value this year.
Cathie Wood’s Endorsement of GBTC
Previously, Cathie Wood publicly endorsed GBTC as her top pick at the Sohn Australia conference held at the Sydney Opera House, as reported by the Australian Financial Review. As of September 30, ARK was the fourth-largest holder of GBTC, possessing 5.6 million shares.
While Wood and ARK’s officials have not yet responded to inquiries about the reduction in GBTC holdings, this move contradicts Wood’s public stance on Bitcoin. The daily trading updates from ARK reflect active decisions made by the management team, excluding any creation or redemption activity influenced by investor flows.
It is worth noting that despite the reduction in GBTC holdings, ARK’s Next Generation Internet ETF has displayed robust performance throughout the year. It has achieved a 65% increase compared to the Nasdaq 100 Index’s 46% advance.
