- Broader financial markets are confident the SEC will approve a spot Bitcoin ETF
- It's not clear how crypto stocks will perform by the time SEC makes a decision
Cathie Wood’s Ark Invest sold Grayscale Bitcoin Trust stock worth $1.6 million and Coinbase stock for $43 million as crypto stock prices hit new highs.
Stakeholders continue to offload crypto stocks as the deadline for the US Securities and Exchange Commission’s (SEC) to potentially approve a spot Bitcoin ETF approaches. Ark Invest, Cathie Wood’s asset management firm, sold all of its remaining stocks in Grayscale Bitcoin Trust (GBTC), Bloomberg reported. The report was cited by Bitcoin Magazine on X.
Narrowing discount to net asset value
On December 19, Bankless Times reported that Ark had sold 809,441 shares of GBTC for around $28 million. This is due to the narrowing discount to net asset value of these shares. It is a way to prepare for the Grayscale Bitcoin ETF, according to insiders.
Effects of spot Bitcoin ETF approval
Broader financial markets are becoming more and more confident that the SEC will approve a spot Bitcoin ETF before the deadline for the regulator to make a decision, which is on January 10, 2024. The outcome is not 100% certain as the SEC has postponed its decision multiple times.
What’s more, crypto stocks’ performance in the leadup to the deadline remains a mystery. Ark Invest’s actions can be seen as a way to adjust the company’s portfolio ahead of the spot Bitcoin ETF approval.
It might also be a way to protect it from potential risks linked to market corrections in advance of the deadline of January 10.
Coinbase execs offloaded 250K shares
Ahead of the deadline, the offloading of crypto stocks continues. A number of crypto media reported that top Coinbase executives sold almost 250,000 shares in their company over a few days.
As Ark Invest sells off crypto stocks, including Coinbase stock, it’s investing heavily in tech companies such as Meta, Tesla, and Block Inc.
