Ark Investment Management Sells Grayscale Bitcoin Trust Shares
Ark Investment Management, the firm led by renowned investor Cathie Wood, has recently made headlines for reducing its holdings in the Grayscale Bitcoin Trust, despite Wood’s public support for the cryptocurrency
Selling Off Bitcoin Trust Shares
According to data compiled by Bloomberg, the Ark Next Generation Internet ETF has sold more than 700,000 shares of the Grayscale Bitcoin Trust since October 23. This includes the offloading of 36,168 shares on a single day last week. The Grayscale Bitcoin Trust allows investors to gain exposure to Bitcoin through a security.
These sales have been occurring alongside a significant increase in the value of Bitcoin. The cryptocurrency reached its highest level since May earlier this month, despite concerns arising from regulatory actions taken against prominent figures in the crypto space.
Lack of Response from Ark
Despite the attention surrounding these sales, Ark Investment Management has not provided a response to queries from Bloomberg regarding the reduction in its Bitcoin Trust holdings. Furthermore, the US markets were closed for the Thanksgiving holiday, limiting further analysis of the situation.
Contradictory Statements
The situation becomes even more confusing when considering Wood’s recent public statements. At the Sohn Australia conference in Sydney, Wood touted the Grayscale Bitcoin Trust as her top pick. However, the recent data shows that Ark Investment Management has been actively reducing its holdings in the trust.
Daily Trading Updates
It’s important to note that the daily trading updates from Ark only reflect active decisions made by the management team and do not include creation or redemption activity influenced by investor flows. Despite these changes, Ark’s internet ETF has performed well, showing a 65% increase for the year compared to a 46% advance in the Nasdaq 100 Index.
Final Thoughts
Wood’s support for Bitcoin and the recent reduction in Ark Investment Management’s holdings in the Grayscale Bitcoin Trust may leave investors and analysts scratching their heads. The disconnect between her public statements and the firm’s actions raises questions about the true sentiment towards Bitcoin within the company.
As of now, there is no clear explanation for these actions, leaving industry observers eagerly anticipating further developments in this evolving story.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
