Cathie Wood’s ARK Invest has completely sold off its holdings in the ProShares Bitcoin Strategy ETF (BITO), signaling a shift in their short-term strategy for gaining exposure to Bitcoin.
On Thursday, ARK Invest offloaded the last 237,983 shares of BITO from its Next Generation Internet ETF (ARKW), valued at roughly $6.7 million based on the closing price. This follows a series of BITO sales throughout January, marking a complete exit from the ETF.
Shifting Strategies From BITO to ARKB?
ARK Invest’s initial purchase of BITO late last year was a strategic move in anticipation of the US approving spot Bitcoin ETFs. The plan was to hold BITO as a temporary measure and eventually swap them for spot Bitcoin ETFs once they became available. However, with the continued delay in spot Bitcoin ETF approvals, ARK appears to be changing course.
ARKB Takes Center Stage
The sale of BITO coincides with a rise in the prominence of ARK’s own Bitcoin ETF offering, the ARK 21Shares Bitcoin ETF (ARKB). With BITO completely out of the picture, ARKB has become the largest holding within the ARKW fund. As of Thursday’s close, ARKB represents 10.4% of ARKW’s total value, with holdings exceeding $160 million.
What Does This Mean for Investors?
ARK Invest’s exit from BITO suggests a potential lack of confidence in the near-term approval of spot Bitcoin ETFs. Investors following ARK’s strategies may want to consider this shift when making their own investment decisions. The rise of ARKB within ARKW indicates a potential focus on ARK’s own Bitcoin ETF offering for gaining exposure to the cryptocurrency. However, it’s important to remember that cryptocurrency markets are inherently volatile, and investors should conduct their own research before making any investment decisions.
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