Investment firm, Ark Invest has recently made significant portfolio adjustments. In a notable move, it sold 139,506 shares of Grayscale Bitcoin Trust (GBTC), amounting to an estimated $3.8 million.
This divestment was executed from Ark Invest’s ARK Next Generation Internet fund (ARKW). Simultaneously, the firm acquired 113,326 shares of Block, Inc., valued at approximately $5.6 million, across three of its funds – ARK Innovation ETF (ARKK), ARKW fund, and Ark Fintech Innovation ETF (ARKF), as revealed in the latest trade filing.
ARK Invest is an American investment management firm that was founded by Cathie Wood in 2014. The company is based in St. Petersburg, Florida, and manages several actively managed exchange-traded funds (ETFs).
Grayscale Bitcoin Trust (GBTC) is a digital currency fund managed by Grayscale Investments, LLC. The fund invests in bitcoins using derivatives like futures, swaps, and other CFTC-regulated instruments linked to digital currencies.
Block Inc. is a fintech company offering hardware and software tools to support business operations and growth. Originally founded in 2009 as Square Inc. by Jack Dorsey and Jim McKelvey, it is now listed on the New York Stock Exchange.
SEC, and Spot Bitcoin ETF
Ark’s decision to adjust its investments follows the recent ruling by the Securities and Exchange Commission (SEC), which opted not to challenge Grayscale’s attempt to transform its primary GBTC fund into a spot Bitcoin exchange-traded fund (ETF).
Grayscale, along with entities like Ark, BlackRock, and others (whose proposals involve new funds rather than the conversion of existing ones into Spot BTC), awaits approval from the US regulatory body.
Furthermore, Ark Invest’s inclination towards Block gained momentum following the release of a report by the Jack Dorsey-led company, revealing a remarkable 22% increase in Bitcoin gross profit during the third quarter. Block reported a profit of $45 million, which represents a substantial increase from $37 million in the corresponding period of 2022.
It’s worth noting that as of February 2021, Ark Invest boasted $50 billion in assets under management. However, by May 2022, the firm’s assets had decreased to $15.9 billion due to poor performance during that period.
In October, Ark Invest made a strategic move by divesting nearly $10 million in GBTC and Coinbase shares during a period of substantial appreciation in Bitcoin’s value.
