With the market’s anticipation of a Bitcoin spot ETF, related concept stocks such as MicroStrategy and Coinbase have performed well in the past six months. However, Ark Invest has recently been selling Coinbase stocks frequently. The latest data shows that they reduced their holdings by 166,183 shares yesterday, worth about $25.3 million.
Summary:
As the deadline for the Bitcoin spot ETF “amendment application” approaches, Ark Invest and 21Shares have not yet indicated their underwriters.
Background:
The female stock goddess has emptied GBTC holdings, and the fund has shifted to BITO, becoming the second-largest holder.
Table of Contents:
Sold over $63 million worth of COIN in five days
COIN remains the largest holding
Clearing GBTC
With high expectations for the Bitcoin spot ETF in the market, hoping that it will further drive up the price of Bitcoin, related concept stocks such as MicroStrategy (MSTR) and the largest US cryptocurrency exchange Coinbase (COIN) have performed well in the past six months, rising by 66.9% and 94.31% respectively. Against this backdrop, Ark Invest, led by the female stock goddess Cathie Wood, has recently been adjusting its investment portfolio frequently.
According to the latest data from Ark Invest Daily, Ark Invest sold a total of 166,183 shares of Coinbase stock on January 3, with a total value of approximately $25.3 million based on the closing price of that day. Among them, Innovation ETF (ARKK) reduced its holdings by 145,048 shares, and Next Generation Internet ETF (ARKW) reduced its holdings by 21,135 shares.
In addition, according to data from the Ark.alien website, Ark Invest also actively sold COIN stocks in December. In addition to ARKK and ARKW, its funds also include Fintech Innovation ETF (ARKF). These funds sold a total of 425,361 shares of COIN stocks in the past five days (from December 27 to January 3), only increasing their holdings by 29,181 shares, resulting in a net reduction of 396,180 shares. Based on the average stock price of about $160 during these five days, the total value of the reduction reached approximately $63.388 million.
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Source: https://ark.alien-tomato.com/
However, despite Ark Invest’s recent significant reduction of COIN holdings, according to the official fund holding data, COIN still has the largest weight in the ARKK, ARKF, and ARKW funds, accounting for 10.37%, 13.44%, and 10.63% respectively. This indicates that despite recent adjustments, Coinbase is still favored by Ark Invest.
Ark Invest itself has also jointly applied for the Bitcoin spot ETF (ARKB) with 21Shares. On the 28th of last week, Ark Invest cleared all the remaining GBTC holdings in the ARKW fund (about 2.25 million shares) and used a large amount of funds to purchase BITO (Bitcoin futures ETF), making Ark Invest the second-largest holder of BITO.
At that time, Bloomberg ETF analyst Eric Balchunas said: “This means that Ark Invest’s move may be preparing for the launch of their own Bitcoin spot ETF (ARKB).”
In addition, according to Phyrex analysis, Ark Invest’s large purchase of BITO (the first long futures ETF in the United States) means that they expect BTC to rise significantly, which reflects their optimism about the approval of the Bitcoin spot ETF. In addition, choosing to sell GBTC is because compared to holding futures, the potential for GBTC to rise after the spot ETF is significantly reduced. After all, according to Coinglass data, the premium rate of GBTC has been reduced to less than 9%.
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