An exchange-traded fund (ETF) managed by Cathie Wood’s ARK Invest has reportedly liquidated all of its holdings in crypto giant Grayscale’s flagship Bitcoin (BTC).
According to Bloomberg, the ARK Next Generation Internet ETF discharged the remaining 2.25 million shares of the Grayscale Bitcoin Trust (GBTC) on Wednesday.
Wood’s fund also picked up 4.32 million shares of the ProShares Bitcoin Strategy ETF for exposure to BTC futures on the same day.
The development comes amid optimism that the US Securities and Exchange Commission (SEC) will finally approve the first US spot Bitcoin ETF on January 10.
The SEC previously rejected Grayscale’s bid to convert GBTC into a spot Bitcoin ETF, prompting the company to file a lawsuit. In August, a federal judge ruled that the securities watchdog must reconsider the application to avoid arbitrariness and inconsistency.
Citing a statement from Wood, Bloomberg reports that the ARK Next Generation Internet ETF has completely sold its GBTC shares “out of an abundance of caution” in case the SEC decides to deny the trust’s conversion to a spot market BTC ETF.
says wood,
“We don’t know exactly who will be approved or whether they have met all the criteria presented to us by the SEC. We are as bullish on Bitcoin as we have ever been.”
Earlier this month, Grayscale CEO Michael Sonnenshein said the approval of a spot-based Bitcoin ETF would open the doors for investors in the $30 trillion advised market to gain exposure to BTC.
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