Grayscale witnessed an 8.6% drop in its Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), on Monday. This decline closely mirrored Bitcoin’s own 5.8% decrease in value. The fluctuation in GBTC shares coincided with the broader volatility observed in the cryptocurrency market.
ARK Invest’s Substantial Sale of Grayscale GBTC Shares
Cathie Wood’s ARK Invest conducted a significant sell-off of around $12.85 million worth of GBTC shares from its Next Generation Internet (ARKW) exchange-traded fund (ETF) on Monday. This sale marks ARK’s most substantial divestment in over a year, resulting in the offload of 395,945 GBTC shares.
As a result, ARKW now holds approximately $112.7 million worth of GBTC, accounting for a 6.95% weighting in the fund. ARK’s strategy aims to ensure no single holding within its ETFs exceeds a 10% weighting of the fund’s total market value.
Grayscale Plans for Bitcoin Trust and SEC Decision
Moreover, Grayscale has expressed intentions to convert its Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF) starting in January. The impending decision by the U.S. Securities and Exchange Commission (SEC) in early next year, involving Grayscale and 13 other firms, will determine the fate of this application.
Grayscale’s aspirations for an ETF conversion align with the broader industry’s anticipation for regulatory approval in the evolving cryptocurrency market.
ARK Invest’s Additional Stock Sales
Alongside the GBTC shares sell-off, ARK Invest also divested $1.88 million worth of Coinbase (COIN) shares on Monday. This latest move follows last week’s significant sale of more than $100 million in Coinbase stock by ARK.
The decline in Grayscale’s GBTC shares, coupled with ARK Invest’s substantial divestment in both GBTC and Coinbase shares, reflects the ongoing volatility in the cryptocurrency market. Grayscale’s ambitions for a Bitcoin ETF conversion and the upcoming SEC decision also remain pivotal factors influencing market sentiment in the digital asset space.