Ark Invest Offloads 500,000 Grayscale Bitcoin Trust (GBTC) Shares

  • The price of GBTC naturally rose along with Bitcoin’s.
  • ARKW sold off 500,000 GBTC shares just around the time the stock price started going up.

Cathie Wood’s Ark Invest offloaded a piece of its Grayscale Bitcoin Trust (GBTC) shares since November’s Bitcoin price lows, the latest data indicates. During the month of November 2022, Ark Invest increased the value of the ARK Next Generation Internet ETF (ARKW) by $4.5 million by purchasing 450,272 GBTC shares. In comparison to its January 2023 price of $12.25, GBTC was trading in the $7.46 to $9.48 range.

In addition, Ark’s decrease in shares since November seems to be consistent with its official bearish opinion on the Grayscale Bitcoin Trust, as revealed in its December report.

Capitalized Recent Upswing

The price of GBTC naturally rose along with Bitcoin’s, increasing by almost 40% from its November lows. According to YCharts, the GBTC “discount” fell from over 50% to 40% thanks to the January rebound. It is interesting to note that ARKW sold off 500,000 GBTC shares just around the time the stock price started going up, indicating that the company was profiting from the recent upswing.

The business also highlighted worries about Genesis Global, a crypto lender controlled by DCG. According to Genesis’ bankruptcy filing, the company owes anywhere from $1 billion to $10 billion to more than 100,000 creditors.

Meanwhile, Grayscale has been unable to convert its Bitcoin trust into an ETF after rejections from the U.S. Securities and Exchange Commission (SEC). If the SEC gives its permission, the price of GBTC may go back to face value. The percentage of Ark’s portfolio allocated to GBTC shares has climbed to 0.52% as of January 23 from a low of 0.35% in November 2022.

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