Bitcoin ETF

Bitcoin

Generation

Grayscale Bitcoin Trust

In a significant shake-up of its Bitcoin (BTC)-related holdings, Cathie Wood’s ARK Next Generation Internet exchange-traded fund (ETF) has made<a href="https://www.newsbtc.com/news/bitcoin/cathie-wood-bitcoin-cash-gold/" target="_blank" rel="noopener "> strategic changes </a>as BTC ends the year with a significant 156% surge. 
According to a Bloomberg <a href="https://www.bloomberg.com/news/articles/2023-12-28/a-cathie-wood-etf-just-overhauled-its-bitcoin-related-holdings" target="_blank" rel="noopener nofollow">report</a>, the ETF sold all its remaining 2.25 million shares of the Grayscale Bitcoin Trust (GBTC) while acquiring 4.32 million shares of the ProShares Bitcoin Strategy ETF.&nbsp; 
<h2 id="caution-as-reason-for-exiting-grayscale-bitcoin-trust">Caution As Reason For Exiting Grayscale Bitcoin Trust</h2> 
According to Bloomberg, Wood cited caution as the reason behind the sale of the <a href="https://www.newsbtc.com/news/bitcoin/grayscale-bitcoin-etf-2-7-billion-exodus-jpmorgan/" target="_blank" rel="noopener ">Grayscale Bitcoin Trust</a>. The move was prompted by concerns that the anticipated conversion of the trust to a spot Bitcoin ETF might not receive approval from US regulators in early January.&nbsp; 
Additionally, Wood highlighted the<a href="https://www.newsbtc.com/news/ethereum/ark-invest-ethereum-futures-etf/" target="_blank" rel="noopener "> substantial reduction</a> in the trust’s discount to its net asset value, which, combined with its price increase, influenced the decision. 
Wood emphasized the unpredictability surrounding which Bitcoin-related offerings would gain regulatory approval, expressing optimism about Bitcoin while acknowledging the uncertainty ahead. 
In this regard, Bloomberg ETF expert Erich Balchunas <a href="https://x.com/EricBalchunas/status/1740194923608178920?s=20" target="_blank" rel="noopener nofollow">highlights </a>that approximately $100 million of the proceeds were used to purchase the ProShares Bitcoin Strategy ETF (BITO), likely as a liquid transition vehicle to maintain exposure to Bitcoin while gradually transitioning into either ARKW or ARKB. 
<img loading="lazy" decoding="async" class="size-large wp-image-567287" src="https://www.newsbtc.com/wp-content/uploads/2023/12/GCZp206XwAAG137.png?w=860&amp;resize=860%2C380" alt="Bitcoin " width="860" height="380" srcset="https://www.newsbtc.com/wp-content/uploads/2023/12/GCZp206XwAAG137.png?w=1680 1680w, https://www.newsbtc.com/wp-content/uploads/2023/12/GCZp206XwAAG137.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2023/12/GCZp206XwAAG137.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/12/GCZp206XwAAG137.png?w=860&amp;resize=860%2C380 860w, https://www.newsbtc.com/wp-content/uploads/2023/12/GCZp206XwAAG137.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2023/12/GCZp206XwAAG137.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/12/GCZp206XwAAG137.png?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
Interestingly, ARK has now become the second-largest holder of BITO, although Balchunas clarifies that this is a temporary parking spot. Blachunas emphasizes that institutions, including ARK, often employ highly liquid ETFs for transitions of this nature.&nbsp; 
Balchunas also points out that this move aligns with the prediction made by Bloomberg a month ago, reflecting strategic foresight on ARK’s part.&nbsp; 
According to Balchunas, this decision is smart as it allows ARK to boost its own ETF’s assets under management (AUM) while saving investors from incurring a significant expense ratio in the process. 
<h2 id="wood-s-long-term-vision">Wood’s Long-Term Vision</h2> 
Per the report, the reduction in holdings of the Grayscale Bitcoin Trust has been a gradual process for <a href="https://www.newsbtc.com/crypto/crypto-market-cap-25-trillion/" target="_blank" rel="noopener ">Cathie Wood</a>, even as the price of Bitcoin surged to its highest level since April 2022.&nbsp; 
Throughout 2023, Bitcoin more than doubled in value, with significant gains occurring towards the end of the year amid speculation that the Securities and Exchange Commission (<a href="https://www.newsbtc.com/bitcoin-news/secs-crypto-asset-securities-alert-boosts-spot-bitcoin-etf-prospects-heres-why/" target="_blank" rel="noopener ">SEC</a>) would approve spot Bitcoin ETFs in the first days of January 2024. 
During the Sohn Australia conference last month, Wood touted the Grayscale Bitcoin Trust as her top pick. However, recent developments have led to a shift in the ETF’s portfolio composition. 
In addition to the changes involving Grayscale and ProShares, the ARK ETF also purchased 20,000 shares of the ARK 21Shares Active Bitcoin Futures Strategy ETF and sold 148,885 shares of the cryptocurrency exchange<a href="https://www.newsbtc.com/coinbase/coinbase-introduces-new-features-for-global-remittances/" target="_blank" rel="noopener "> Coinbase Global</a>, according to the fund’s report. 
The ARK Next Generation Internet ETF has achieved an impressive 103% gain for the year, surpassing the 55% advance of the Nasdaq 100 Index.&nbsp; 
It is worth noting that the fund’s performance has been characterized by significant volatility, experiencing declines of 19% and 67% in 2021 and 2022, respectively. 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/w5U8wFsc/" alt="Bitcoin " width="1814" height="858"> 
The leading cryptocurrency in the market is trading at $42,800, exhibiting a sideways price movement over the past 24 hours. During this timeframe, there has been a marginal decrease of 0.3% in its value. 
Featured image from Shutterstock, chart from TradingView.com&nbsp;

Cathie Wood’s ARK ETF Overhauls Bitcoin Portfolio: ProShares In, Grayscale Out – What’s The Strategy?

Table of Contents

NewsBTC

Other articles published on Dec 28, 2023

Vitalik Buterin Unveils Plan to Simplify Ethereum’s PoS Process

After the PancakeSwap news, $CAKE token gained 7% profit 🔥 https://t.me/coinotagpro_bot

🚀✨ WEEKLY HODL ROUNDUP: DEC 18 - DEC 24, 2023 ✨🚀

As Strange Solana Memecoin Blasts Up 20,000%, Billionaire Justin Sun is Stacking This Other Coin

How to Buy GXChain Coin?

Ethereum experiences 9% surge, sparking optimism among traders

Join our free newsletter for daily crypto updates!