Cathie Wood's Ark Invest Sells $5.8M in Coinbase, Grayscale Bitcoin Trust Shares as Crypto Market Surges

Long-time Bitcoin bull Cathie Wood moved to offload almost $5.8 million in Coinbase and Grayscale Bitcoin Trust (GBTC) shares on Monday, as the leading cryptocurrency surged by over 10%.

Ark Invest’s latest trade information newsletter revealed the sale of 42,613 COIN shares through ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF, worth $3.29 million with the closing price of $77.21 on Monday evening.

Additionally, the firm sold 100,739 Grayscale Bitcoin Trust (GBTC) shares worth $2.48 million with the closing price of $24.70.

The move came amid as Bitcoin surpassed $34,000, setting a record high for 2023.

Ark Invest is the second-largest shareholder of GBTC, holding over $130 million in the trust. With a 10.42% weight, GBTC is also the top holding in ARKW, the firm’s fund that seeks to actively invest in internet-based products and services, cloud computing, artificial intelligence, e-commerce, and media innovations. COIN accounts for 9.08% of the ARKW portfolio.

By the closing bell on Monday, COIN was up 130% since the start of the year, while GBTC posted even more spectacular gains of 201% YTD.

Anticipation for a Bitcoin ETF

Shares of Grayscale’s flagship Bitcoin fund ended trading up 4.5% on Monday, as news broke that the U.S. Court of Appeals compelled the Securities and Exchange Commission (SEC) to revisit Grayscale’s spot Bitcoin ETF application.

The judgment relates to a lawsuit Grayscale filed against the SEC last year, suing the agency for refusing to allow the conversion of GBTC into a spot Bitcoin ETF.

The investment firm won a landmark victory in August when the court said that the SEC failed to “adequately explain” why it previously approved the listing of Bitcoin futures ETFs, but not Grayscale’s proposed product.

Citing market manipulation concerns, the SEC has repeatedly denied or postponed applications for spot Bitcoin ETFs, which allow investors to gain exposure to the leading cryptocurrency without physically holding the asset.

The court’s latest decision does not guarantee the successful conversion of GBTC to a Bitcoin ETF—the SEC can refuse it on other grounds. However, the market experienced an upswing as the news broke, which was further boosted by the Depository Trust & Clearing Corporation (DTCC) listing a ticker for Blackrock’s iShares Bitcoin Trust (IBTC)—another spot Bitcoin ETF that's currently awaiting a decision from the SEC.

Ark Invest's CEO and chief investment officer Cathie Wood has been a long-time advocate of Bitcoin, having once predicted a $1 million price target for the leading cryptocurrency.

The firm is also in the race for the launch of a spot Bitcoin ETF, this month filing a second amended application for the proposed product.

Edited by Stephen Graves