ARK Invest Sold Their Entire Bitcoin Holdings Worth $100M

ARK Invest shocked everyone by selling off their entire Bitcoin position, which was held in the Grayscale Bitcoin Trust. So, why did they sell? The reason behind their decision lies in the upcoming Bitcoin ETFs. Bloomberg Analyst Eric Balcunhaus believes that Cathie Wood, the CEO of ARK Invest sold off their Bitcoin in preparation for the approval of a spot Bitcoin ETF. 

ARK Invest has a pending application, and they are likely to use the money they had in the Grayscale trust to seed the first investment in their own Bitcoin ETF. By doing this, they hope to attract more investors to their specific ETF. 

Kathie said that there are some uncertainties regarding regulation and taxes. They have been waiting for the discount between Grayscale Bitcoin Trust (GBTC) and Net Asset Value (NAV) to narrow down. 

It was as high as 50% at one point last year when there was great uncertainty around the turmoil in crypto generally, but now it’s just a single digit. 

However, Kathie said that they are currently in a moment of uncertainty about the ETF’s approval between now and January 8th to 10th, somewhere in that range. Therefore, they didn’t want to take any risk over the last week of 2023. 

The Dump of $100 Million after a Bullish Target 

The position of ARK Invest was worth over $100 million, and they had been Bitcoin’s biggest advocate with price targets of $1.4 million in 2030. It seems insane that they would sell, but it is believed that they did it out of an abundance of caution.

Bloomberg analyst Eric Balthousee believes that Kathy Wood sold off their Bitcoin position in preparation for the approval of a spot Bitcoin ETF. Arkin Bestest has a pending application and plans to use the money in the Grayscale Trust to invest in their own Bitcoin ETF. 

Kathie Believes in Deflation for 2024

Wood’s latest interview explains why she sold and her outlook for Bitcoin in 2024. She believes that deflation throughout 2024 will be extremely bullish for innovation and crypto in general. 

The SEC has been highly engaged in the process, and Wood believes that the SEC’s engagement has increased the probability of approval for their Bitcoin ETF. However, the chances are slim after the current report by Matrixport. 

Wood also notes that the public markets have been leading the private markets for the past three years, and private evaluations are starting to revalue to the downside. Wood’s strategic move to sell off their entire Bitcoin position, valued at over $100 million, marks a significant point in their investment strategy.

Conclusion

Kathie Wood said in a recent interview that her company sold all of its Bitcoin holdings. This position was worth over $100 million, and it had been one of the bullish firms with price targets of $1.4 million in 2030. This sell-off has triggered the market along with the Matrixport report and the Bitcoin price has been down since yesterday

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.