Cathie Wood’s ARK Investment Management Cuts Holdings in Grayscale Bitcoin Trust
At ARK Investment Management, a firm founded by noted investor Cathie Wood, there has been a surprising development. Despite Wood’s vocal support of Bitcoin, the firm has actually been cutting its holdings in the Grayscale Bitcoin Trust.
Cutting Holdings
According to the daily trading data compiled by Bloomberg, the ARK Next Generation Internet ETF has sold more than 700,000 shares of the Bitcoin Trust since October 23. The firm offloaded 36,168 shares on a single day – Wednesday.
Bitcoin Continues to Rally
Interestingly, these sales have been taking place during a period where Bitcoin has been on the rise. The cryptocurrency reached its highest level since May 2022 earlier this month, and has more than doubled in value over the course of the year. This rally has occurred at a time when there has been regulatory uncertainty, with policymakers taking action against prominent figures in the crypto space.
Wood’s Praise and Silence
At the Sohn Australia conference at the Sydney Opera House on Friday, Cathie Wood touted the Grayscale Bitcoin Trust as her top pick. However, these actions are in contrast to the overall trend of reducing holdings in the trust.
No Response from ARK
Despite attempts to seek clarification, ARK’s officials did not respond to queries from Bloomberg. It should be noted that the US markets were closed for a Thanksgiving holiday on Thursday.
Investor Feedback
It is important to note that the daily trading updates from ARK only reflect active decisions made by the management team, and do not include any creation or redemption activity that might be caused by investor flows.
Overall Performance
Despite this decision to reduce holdings in the Grayscale Bitcoin Trust, ARK’s internet ETF has performed well, with a 65% increase in value for the year. This compares favorably to a 46% advance in the Nasdaq 100 Index.
Conclusion
The actions of ARK Investment Management to reduce holdings in the Grayscale Bitcoin Trust despite the recent surge in Bitcoin’s value have raised eyebrows. Wood’s public praise of the trust at the Sohn Australia conference presents a stark contrast to the firm’s decision to offload shares. It remains to be seen whether ARK will provide an explanation for these actions in the coming days.
I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.
