ARK Investment Management reduces GBTC stake amid Bitcoin price increase

Ark Investment Management’s ARKW ETF has significantly reduced its holdings in Grayscale Bitcoin Trust (GBTC), selling off millions of dollars worth of shares over the course of two days. On Monday, the fund sold about $27.6 million of its GBTC shares, followed by another sale of about $28 million today.

These transactions mark a significant decline from the fund’s peak GBTC position in July 2021. The sell-off comes as Bitcoin price shows signs of recovery, surpassing the $43,000 threshold today. At the same time, the discount to Net Asset Value (NAV) for GBTC stock has dropped significantly to -8.04%.

The ARKW ETF’s divestment from GBTC reflects ARK Investment Management’s latest strategic move in the cryptocurrency space, in line with market dynamics as Bitcoin regains momentum. The narrowing of the discount to NAV indicates growing investor interest in GBTC, which has historically traded at a premium to actual Bitcoin market value.

This development is notable for investors following the cryptocurrency market and institutional participation through investment vehicles such as GBTC. ARK Investment Management’s adjustment to its GBTC exposure could signal a broader shift in strategy as the digital asset landscape evolves.

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