SUPERNEWS

Crypto

ARK Divests $6.7M in Bitcoin Futures for ARKB Focus

ARK Invest divests $6.7 million in BITO shares, reallocating to its own ARKB as a strategic long-term cryptocurrency investment.

By Alex P. Chase

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4/26, 07:36 EDT
Bitcoin / U.S. dollar
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Key Takeaway

  • ARK Invest sold its remaining ProShares Bitcoin Strategy ETF (BITO) shares, totaling $6.7 million, from its ARKW fund.
  • The firm had initially bought over 4 million BITO shares as a short-term investment, planning to swap for spot bitcoin ETFs upon their approval.
  • ARK's largest holding is now in its own ARK 21Shares Bitcoin ETF (ARKB), with shares worth $160.6 million, making up 10.4% of the fund's value.

ARK Invest Exits BITO

Cathie Wood's ARK Invest made headlines by offloading its remaining shares in the ProShares Bitcoin Strategy ETF (BITO), marking a significant shift in its investment strategy. The sale involved 237,983 BITO shares, valued at approximately $6.7 million based on Thursday's closing price of $28.22, from its Next Generation Internet ETF (ARKW). This move comes after ARK initially purchased over 4 million BITO shares late last year, positioning it as a short-term investment in anticipation of U.S. regulatory approval for spot bitcoin ETFs.

Transition to ARKB

Following the sale of BITO shares, ARK's focus has pivoted to its own ARK 21Shares Bitcoin ETF (ARKB), which now stands as the fund's largest holding. With 2,480,644 shares worth $160.6 million at Thursday's closing price of $64.76, ARKB represents a significant 10.4% of the fund's total value. This strategic reallocation underscores ARK's confidence in its proprietary ETF offering, signaling a long-term commitment to the cryptocurrency space.

Market Implications

The divestiture from BITO and the increased stake in ARKB could have broader implications for the cryptocurrency market and ETF landscape. ARK's decision to shift its investment from a bitcoin strategy ETF to a direct stake in its own bitcoin ETF highlights a growing trend among investment firms to have more direct exposure to cryptocurrencies. This move might influence other institutional investors' strategies regarding cryptocurrency investments and ETF holdings.

Management Quotes

  • Cathie Wood, ARK Invest:

    "ARK bought over 4 million of the shares late last year as a short-term play in anticipation of the approval of spot bitcoin ETFs in the U.S., with plans to swap them once the approval came."