One of Cathie Wood's funds, the ARK Next Generation Internet ETF (NYSE:ARKW), has offloaded its entire stake in the Grayscale Bitcoin Trust (OTC:GBTC) ahead of the U.S. Securities and Exchange Commission's (SEC) decision on Bitcoin ETFs.
What Happened: Wood's fund offloaded the remaining 2.25 million Grayscale Bitcoin Trust shares on Wednesday, according to a report by Bloomberg.
The company also procured 4.32 million shares of the ProShares Bitcoin Strategy ETF (CRYPTO: BTC), making it the fund's second-largest holder per Ark Investment Management LLC's daily data.
Wood told Bloomberg Television that the decision was made "out of an abundance of caution" in case Grayscale Trust's conversion to an ETF doesn't gain U.S. regulatory approval in early January.
"We think the probabilities have gone up because the SEC has been highly engaged compared to what was happening before," she added.
The Wood-led ARK Invest and 21Shares have a pending spot Bitcoin ETF application with the SEC. Although Wood is optimistic about approval chances, she warned that it is "not 100% certain."
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In addition to the reshuffling, the ARK ETF also acquired 20,000 shares of the ARK 21Shares Active Bitcoin Futures Strategy ETF and sold 148,885 shares of Coinbase Global Inc. (NASDAQ:COIN).
Why It Matters: Earlier in December, the fund sold $12.8 million worth of Grayscale Bitcoin Trust shares amid fluctuating cryptocurrency prices.
ARK's portfolio adjustments continued with the selling of GBTC units and the purchase of Block Inc (NYSE:SQ) shares in the third week of December.
These changes come as Cathie Wood expressed optimism about the U.S. Securities and Exchange Commission's likely approval of a Spot Bitcoin ETF in January.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Illustration by Benzinga using photo courtesy of Ark Invest.
