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February 18, 2024

Cathie Wood’s Ark Invest Sells off Entire GBTC Holdings, Allocates $100 Million to Bitcoin Futures ETF BITO

Cathie Wood's Ark Invest has sold off its entire holdings of Grayscale Bitcoin Trust (GBTC) worth $122 million and instead allocated them to Bitwise Bitcoin Futures Managed ETF (BITO), a newly launched product that provides exposure to bitcoin and other digital currencies. The transaction, said to be the largest ever reported in the ETF space, was the fund's response to the skyrocketing price of GBTC, which rose over 400% in one year. According to Ark Invest's Q4 2020 holdings report, the fund held $122 million in GBTC, but has now moved that money into BITO, an exchange-traded fund that trades like a stock. BITO tracks the performance of bitcoin futures contracts, allowing investors to gain exposure to digital currencies without directly owning it. The fund has begun trading on the NYSE Arca on February 15, 2021.