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Edited by Kahn332 at 22-12-2023 04:59 AM
Recently, there have been expectations in the community for a Bitcoin spot ETF. With Bitcoin continuing to rise, it has led to a significant reduction in the discount of Grayscale's flagship fund, GBTC. However, Ark Invest, which has always been bullish on Bitcoin, has been consistently selling GBTC since August. Could it be that they believe this rally has risen too much and it's time to take profit? Bloomberg analyst Eric Balchunas suggests that this is because the sharp rise in GBTC requires Ark to sell to maintain the fund's weight.
Balchunas emphasizes that he is definitely not defending ARK's BTC predictions but pointing out that Ark likes to sell risers (and vice versa) to maintain the required weight in its portfolio. Since GBTC has risen 76% since August, ARK must sell to keep its weight around 9%.
GBTC has consistently been among the top three holdings of Ark's ARKW fund, with a weight of 9.15%, according to its official website. The top holding, Coinbase (ticker: COIN), is at 10.88%.
According to data from ArkTrace, ARKW has sold 1.29 million shares of GBTC since August, approximately selling $32.25 million worth of GBTC at an average price of $25. ARKW's current net asset value is $1.141 billion.
ARKW has risen 70% year-to-date, while GBTC has risen 220% and Bitcoin has risen 125% during the same period. |
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Post time 5-12-2023 04:28:18