Home Crypto News Cathie Wood’s Ark Investments reduces its holdings in the top pick Bitcoin Trust.

Cathie Wood’s Ark Investments reduces its holdings in the top pick Bitcoin Trust.

by Michael Stark

Cathie Wood’s Ark Investment Management Trims Holdings in Grayscale Bitcoin Trust

As Bitcoin reaches its highest level since May, Cathie Wood’s Ark Investment Management has been actively selling shares of the popular Grayscale Bitcoin Trust, despite her bullish stance on the cryptocurrency.

Cutting Holdings
According to the ETF provider’s daily trading data compiled by Bloomberg, Ark Next Generation Internet ETF has sold more than 700,000 shares of Bitcoin Trust since October 23, with 36,168 shares offloaded on Wednesday. This move is surprising given Wood’s vocal support for Bitcoin in recent months.

Rising Value
The sales come at a time when Bitcoin has rallied to its highest level since May 2022, despite uncertainty caused by policymakers taking action against crypto founders Changpeng “CZ” Zhao of Binance Holdings Ltd. and Sam Bankman-Fried of FTX. Bitcoin has more than doubled in value this year, making it an attractive investment option for many.

No Response
Despite the data and queries from Bloomberg, Ark’s officials have not responded, leaving investors to speculate about the reasoning behind the decision to sell shares of Bitcoin Trust.

Top Pick
Surprisingly, at the Sohn Australia conference at the Sydney Opera House on Friday, Wood touted Grayscale Bitcoin Trust as her top pick, according to the Australian Financial Review. This seems contradictory to the firm’s recent actions of selling shares of the trust.

Active Decisions
The daily trading updates from Ark only show active decisions made by the management team and do not include creation or redemption activity caused by investor flows. This suggests that the decision to sell shares of Bitcoin Trust was a strategic move by Ark Investment Management.

Impressive Performance
Despite the decision to sell Bitcoin Trust shares, Ark’s internet ETF has performed impressively, with a 65% increase in value for the year, compared to a 46% advance in the Nasdaq 100 Index. This demonstrates that Ark has been successful in managing its overall investment portfolio, despite the recent decision to reduce holdings in the Grayscale Bitcoin Trust.

The unexpected move by Cathie Wood’s Ark Investment Management to sell shares of the Grayscale Bitcoin Trust raises questions about the firm’s stance on Bitcoin and its investment strategy. As Bitcoin continues to rally, investors will be closely watching to see how this decision plays out.

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