According to Bloomberg, Cathie Wood's Ark Investment Management has been shuffling its Bitcoin holdings amid an industry race to get US regulatory approval for the first ETF to invest directly in the largest cryptocurrency. Wood stated that the move was made 'out of an abundance of caution' in case the Grayscale trust's conversion to an ETF is not approved by US regulators in early January. The Securities and Exchange Commission (SEC) faces a January 10 deadline to decide whether to approve a spot Bitcoin ETF application filed by Ark Investment Management and 21Shares, as well as potentially other similar filings.
Wood noted that the Grayscale trust's previous large discount to its net asset value has shrunk considerably, which was 'double good news for us' when combined with its price increase. However, she cautioned that an approval is 'not 100% certain.' Ark has been trimming its holdings in the Grayscale Bitcoin Trust in recent months, even as Bitcoin rose to its highest level since April 2022. The cryptocurrency has more than doubled in 2023, with much of the gains coming toward year-end amid speculation that the SEC will finally approve spot Bitcoin ETFs early next month. Bitcoin fell 2.1% to $42,472.50 as of 5 p.m. in New York, while the Grayscale Bitcoin Trust closed 4% lower.
