In the dynamic world of cryptocurrencies, ARK Invest, led by Cathie Wood, known as the Bitcoin whale, made headlines with its strategic moves in the market. Last week, ARK Invest sold an impressive 163,722 shares of Grayscale Bitcoin Trust (GBTC), making a significant gain of $5.02 million at closing prices. This decision was taken as the investment company closely monitors market trends and adjusts its portfolio accordingly. Here are the details…
ARK Invest benefited from Grayscale’s Bitcoin product
In a calculated move, ARK Invest significantly reduced its holdings in GBTC, with the total shares reduced by the Next Generation Internet ETF (ARKW) reaching 579,077 in November. This move resulted in gains of approximately $16.9 million, reflecting ARK Invest’s proactive approach to maximizing profits in the crypto industry. ARK Invest has a well-established strategy of accumulating crypto-related stocks during downtrends and strategically disposing of them when market conditions turn bullish.
The sales in November coincided with a period when GBTC’s discount to net asset value reached 8.6 percent on Friday, the lowest level since July 2021. Analysts attribute this optimistic shift to Grayscale’s recent discussions with the Securities and Exchange Commission (SEC) regarding the conversion of the trust into a spot Bitcoin exchange-traded fund (ETF). This marks a significant improvement from last December’s record-low discount of almost 50 percent.
What is the latest situation in the market?
Meanwhile, the cryptocurrency market experienced a rollercoaster ride last week that culminated in Bitcoin rising to an 18-month high of $38,500, only to encounter resistance and a pullback over the weekend. Bitcoin’s price journey began a week ago when it fell below $36,000 following the Binance-DOJ settlement. The subsequent rally to $38,500 sparked optimism within the community, but the bears quickly asserted themselves, leading to a pullback to around $37,500 over the weekend.
Despite the fluctuations, Bitcoin showed resilience and closed Sunday with a price rising from $37,200 to $37,800. However, the subsequent reversal caused BTC to drop to a 4-day low of $37,100. Currently, Bitcoin is hovering a few hundred dollars above this level, with a dominance of 51.5% and a market cap of $730 billion. The broader cryptocurrency market witnessed mixed movements, with larger-cap altcoins pulling back, including Ethereum, Binance Coin, Ripple, Cardano, Tron, Toncoin, Avalanche and Polkadot.
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