Cathie Wood ARK ETF Swaps Bitcoin Strategies: Out with Grayscale, In with ProShares Power Move

Cathie Wood's ARK Next Generation Internet ETF undergoes a significant transformation in its Bitcoin holdings. The ETF recently sold off its entire stake in the Grayscale Bitcoin Trust and entered a substantial position in the ProShares Bitcoin Strategy ETF, securing the second-largest holding spot.

This move comes as Cathie Wood expresses caution regarding Grayscale's potential transition to a spot-Bitcoin ETF, a move anticipated in early January. Wood emphasizes that the sale aligns with their vigilant approach. Additionally, she notes the positive impact of the Grayscale Bitcoin Trust's reduced discount to its net asset value, coupled with its price surge.

Speaking on Bloomberg Television, Wood assures that their optimism about Bitcoin's future remains unwavering, despite uncertainties surrounding regulatory approvals. The transition away from Grayscale has been a gradual process, with Wood steadily decreasing holdings even as Bitcoin's value soared to new heights throughout 2023.

Bitcoin has experienced exceptional growth this year, more than doubling in value, especially in the final months amid speculations of potential SEC approval for spot Bitcoin ETFs in the near future.

Wood, previously vocal about her preference for the Grayscale Bitcoin Trust, has now shifted her focus to the ProShares Bitcoin Strategy ETF.

Alongside these changes, the ARK ETF made additional adjustments on the same day, including the purchase of 20,000 shares in the ARK 21Shares Active Bitcoin Futures Strategy ETF and the sale of 148,885 shares in crypto exchange Coinbase Global Inc., as outlined in the fund’s report.

Despite the ARK Next Generation Internet ETF's impressive 103% growth for the year, outpacing the Nasdaq 100 Index's 55% advance, it's crucial to acknowledge the fund's historical volatility. In 2021 and 2022, the fund experienced significant drops of 19% and 67%, respectively. This reshaping of Bitcoin-related investments positions the ARK ETF for continued adaptability in the evolving cryptocurrency market landscape.

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