Cathie Wood’s Ark Invest recently announced that it had sold its entire position in the Grayscale Bitcoin Trust (GBTC). The move came as Ark Invest allocated $100 million of its assets to a newly launched Bitcoin (BTC) futures ETF, BITO. Of this allocation, $30 million was allocated to the ETF on launch, with the remaining $70 million to be allocated as the ETF progresses.
Through the move, Ark Invest has become the first major investment firm to fully divest its holdings of GBTC and allocate capital to BITO, a leading Bitcoin futures fund. The move comes as BITO begins to grow in size, aiming to become the world’s largest Bitcoin futures fund.
BITO’s strategy focuses on arbitraging the different Bitcoin futures contracts listed on major exchanges and accounts for 35% of Bitcoin futures trading volume. As demand for Bitcoin futures increases, BITO’s assets are expected to grow, increasing the ETF’s exposure to the digital asset in the process.
The move from Ark Invest to double down on its Bitcoin exposure suggests that the firm has been paying close attention to the performance of the digital asset since the start of 2021 and is positioning itself to benefit from continued Bitcoin gains.