A senior ETF analyst at Bloomberg, Eric Balchunas, has provided insight into ARK Invest's recent sale of GBTC shares, dispelling assumptions that these divestitures signify a bearish stance on Bitcoin or a move to make room for an ARK Bitcoin ETF (ARKB).
Balchunas explains that an understanding of ARK's historical weighting strategies is necessary before interpreting the firm's moves. According to him, ARK has a propensity to offload appreciating assets (and vice-versa) to maintain a balanced portfolio based on their desired weightings.
Since August, $GBTC has seen a significant surge of 76%. In this context, ARK has been selling a considerable volume of shares to keep Bitcoin's portfolio weighting at about 9%. Despite this selling off, the Bitcoin's portfolio weighting has still risen.
Balchunas' comments entail that the sales are more a routine practice of portfolio adjustment to balance weightings rather than indicative of ARK's sentiment towards Bitcoin or a preparation for ARKB. Therefore, these transactions should not serve as a measure of ARK Invest's bullishness or bearishness on Bitcoin.
