According to Eric Balchunas, a Bloomberg ETF analyst, Cathie Wood, the founder of ARK Invest, cited tax and regulatory uncertainties as the primary reasons for selling all of her Grayscale Bitcoin Trust (GBTC) holdings. Wood divulged this on BBTV, remarking, "There is currently tax and regulatory uncertainty about GBTC. We don’t know who will be approved. We know we have met the conditions, but we don't know for others. In addition, the discount has narrowed significantly, which is a double benefit for us."
Previously, Balchunas reported that ARK Invest had sold all of its remaining GBTC positions, which was the largest in ARKW just a month ago. About $50 million from the sell-off, around half of the total, was reinvested in shares of the ProShares Bitcoin Futures ETF (BITO). This move is seen as a liquidity transition tool by ARK to keep its ARKW or ARKB in line with Bitcoin's beta amidst the shift.