Cathie Wood, the renowned investor, is making significant changes to her cryptocurrency holdings as she prepares for the anticipated approval of spot Bitcoin exchange-traded funds (ETFs) in January 2024.
On Wednesday, ARK Invest’s Next Generation ETF purchased over $92 million worth of shares in ProShares Bitcoin Strategy ETF, as stated in a trade notification. Simultaneously, the ETF sold its remaining 2.25 million shares of Grayscale Bitcoin Trust, according to Bloomberg’s data.
Previously, Grayscale Bitcoin Trust stood as the Next Generation ETF’s leading holding just a month ago. However, ARK has been gradually reducing its position in recent weeks. The latest holdings data released on Thursday no longer includes Grayscale.
Additionally, the Next Generation ETF acquired 20,000 shares of the ARK 21Shares Active Bitcoin Future Strategy ETF and sold 148,885 shares of Coinbase, as indicated in the trade notification on Wednesday.
During an interview with Yahoo Finance earlier this week, Wood stated her expectation that investors would “sell on the news” if the Securities and Exchange Commission grants approval for spot Bitcoin ETFs. However, she remains positive about the long-term outlook.
Both ARK and 21 Shares currently have pending Bitcoin ETF applications awaiting approval before January 10.
Bitcoin’s price has experienced a substantial surge in recent months, with a 59% increase in the fourth quarter of 2023 and a year-to-date growth of 158%, primarily driven by expectations surrounding ETF approval in the coming year.
In 2023 alone, the ARK Next Generation ETF has seen a remarkable climb of 103%.
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