Cathie Wood’s fund (the ARK Next Generation Internet ETF) experienced a notable shift in its Bitcoin portfolio when it decided to sell all its Grayscale shares (2.25 million). This decision was driven by concerns about the successful conversion of Grayscale Bitcoin Trust into an ETF.
The investment firm seized the opportunity to acquire 4.32 million shares of the Bitcoin Strategy’s ETF ProShares, a fund specializing in Bitcoin futures. As a result, this new addition elevated the fund to become the second-largest holder, as indicated by its daily data.
The firm shuffled its holdings as the industry seeks US approval for the first ETF that invests directly in Bitcoin. Cathie Wood conveyed to Bloomberg that they’re just trying to be cautious, in case the Grayscale Trust’s ETF approval is declined.
However, many observers believe that the highly anticipated January approval will be successful. She added that the Grayscale trust’s big discount to its net asset value had reduced a lot, which was “very good news for us” along with its price rise.
The SEC must decide by January 10 whether to approve spot Bitcoin ETF applications from ARK Investment Management and similar filings made by others. Wood believes that these filings have a high chance of getting approved since the SEC has been more involved than ever before.
She stated that while they had met the application criteria, approval was “not guaranteed.” Wood further added that no one knows whose filing will be approved and if they have fulfilled the SEC‘s criteria.
Bitcoin appreciated by over 100% in 2023 in the last few months, as investors anticipate the spot Bitcoin ETF approval by the SEC in the new year.
