Cathie Wood-led ARK Invest divests BITO shares to double down on in-house Bitcoin ETF

In this move, the Cathie Wood-led steadfast liquidated 757,664 shares of the ProShares Bitcoin Strategy ETF (BITO) astatine an approximate worth of $15.8 million, redirecting the proceeds to get 365,427 shares of ARKB, besides valued astatine $15.8 million.

ARKB is 1 of the newly approved spot Bitcoin ETFs successful the U.S. BitMex Research data shows that the money has recorded a affirmative nett travel of $229 cardinal wrong the archetypal 3 days of trading.

Despite this transaction, ARKW inactive retains astir 3.4 cardinal shares of ProShares’ BITO, constituting astir 5.56% of its wide holdings.

This improvement is coming little than a period aft ARKW sold each its positions successful Grayscale’s Bitcoin Trust (GBTC) and purchased a $92 cardinal presumption successful ProShares’ BITO. At the time, observers characterized the determination arsenic a transitional strategy for ARKW to clasp “high beta” with Bitcoin.

Community reaction

Meanwhile, this strategical reallocation wrong ARK’s portfolio has garnered attraction successful the crypto community, with galore interpreting it arsenic a determination to heighten marketplace visibility.

Nate Geraci, laminitis of ETF Store, opined that ARK Invest’s maneuver is geared toward competitory positioning successful the marketplace and noted that the determination would assistance the steadfast trim the high fees it was paying antecedently for this aforesaid BTC exposure.

He said:

“ARK was paying 2% interest annually for GBTC (pre-uplisting). Then 95bps for BITO. Fees present spell away. Much much axenic bitcoin terms vulnerability remains. Not a gross generator for ARK, but volition marque them much viable rival from optics standpoint (AUM, etc).”

Speculations besides abound that this strategical realignment would let ARKW to put arsenic overmuch arsenic 25% successful its subsidiary. Recently, the steadfast submitted an exertion to the SEC seeking support to put up to 25% successful a subsidiary, a departure from the perceived 10% limit.

“ARKW whitethorn summation vulnerability to bitcoin and different cryptocurrency-related investments by investing up to 25% of its full assets successful a wholly-owned subsidiary of the Fund organized arsenic a institution nether the laws of the Cayman Islands,” the filing reads.