Cathie Wood’s Ark Invest and its ARK Innovation ETF (ARKK) have sold off their entire holdings of the Grayscale Bitcoin Trust (GBTC) and invested $100 million into the Bitcoin futures ETF BITO.
First reported by Bloomberg, the investment is seen as a move to capitalize on the increasing demand for Bitcoin exposure, despite the fact that GBTC continues to outperform the rest of the crypto market.
BITO is the 1st fully-backed and regulated Bitcoin ETF in Canada, allowing institutional investors to gain exposure to Bitcoin without having to purchase the digital asset through marketplaces, such as Coinbase.
BITO is currently trading below its Net Asset Value (NAV), making it an attractive purchase for those looking to profit from its inefficiencies. Additionally, it is one of the more popular ETFs of 2021 thus far, seeing record-setting inflows since its launch in February.
The decision by Ark Invest to move their entire share of GBTC holdings to BITO may be indicative of a broader shift in institutional sentiment away from the popular Grayscale trust.
With Bitcoin’s price remaining steady, more investors may follow suit and invest in the Bitcoin ETF – or a comparable product – in order to benefit from the asset’s long-term performance.