Posted: December 29, 2023 6:51 AM Updated: December 29, 2023 6:51 AM
Correction and fact check date: December 29, 2023, 6:51 AM
briefly
ARK Invest acquired 4.3 million shares of BITO in anticipation of the possible approval of a spot Bitcoin ETF in January 2024.
Investment management firm ARK Invest has acquired 4.3 million shares of the ProShares Bitcoin Strategy exchange-traded fund (BITO), which tracks futures prices linked to the world’s largest cryptocurrency.
Launched in October 2021 as the first Bitcoin exchange-traded fund (ETF) in the United States, the ProShares ETF currently accounts for 5.03% of the Next Generation Internet ETF (ARKW), ranking it as the sixth-largest holding. The approximate value of ARK Invest’s stake in BITO is $92 million.
To finance the acquisition, ARK Invest sold approximately $27.6 million worth of Coinbase Global stock. The move follows the company selling more than $200 million in Coinbase stock over the past month. Coinbase stock has surged more than 400% this year.
These portfolio adjustments come ahead of an expected decision from the U.S. Securities and Exchange Commission (SEC) next month regarding the potential approval of a spot Bitcoin ETF for trading in the United States.
Asset managers await SEC approval
Currently, about 13 asset managers are awaiting regulatory approval from the SEC to launch a series of derivatives-based products, including an ETF that tracks the spot price of Bitcoin.
ARK Invest, in partnership with 21Shares, recently refiled documents with the SEC, seeking approval for a spot Bitcoin ETF called the ARK 21Shares Bitcoin ETF. The move follows a statement from the regulator that the initial prospectus did not meet requirements to prevent fraud and market manipulation.
Earlier this week, software company MicroStrategy said it had purchased approximately $615.7 million worth of Bitcoin in cash ahead of the upcoming SEC decision.
ARK Invest’s recent acquisitions highlight the company’s strategic moves within the evolving cryptocurrency landscape in line with broader expectations of SEC approval of the Bitcoin ETF.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles