Ark Invest, a prominent investment management firm, has recently closed its position in Grayscale’s Bitcoin Trust. This move comes as the company prepares to launch its own spot Bitcoin ETF. Ark Invest had previously invested around $100 million in ProShares Bitcoin futures ETF with the proceeds from selling its Grayscale Bitcoin Trust holdings.
The decision to sell its Grayscale Bitcoin Trust holdings is significant as it was the largest holding in Ark Invest’s Next Generation Internet exchange-traded fund just a month ago. Now, the firm is focusing on buying shares in the largest Bitcoin futures ETF, becoming the second largest holder after Goldman Sachs.
By investing in the Bitcoin futures ETF, Ark Invest is essentially using it as a temporary parking spot until it launches its own spot Bitcoin ETF next year, pending approval from the US Securities and Exchange Commission. This move allows the firm to closely track the price of Bitcoin and ensures high liquidity for its investors.
In other news, Bitcoin is currently trading at around $43,000, experiencing a slight increase since Wednesday. Ethereum has gained 5.6% and is trading above $2,400, while Solana and Avalanche have seen slight decreases in price.
Overall, Ark Invest’s strategic investment decisions in the cryptocurrency market reflect the company’s forward-thinking approach and commitment to providing value for its investors.