The US Securities and Exchange Commission (SEC) again landed on scrutiny of major institutional investors for delaying its much anticipated decision over the approval of spot Bitcoin (BTC) exchange-traded fund (ETF). However, ARK Invest CEO Cathie Wood suggests that regulatory approval might affect Grayscale’s launched trust.
Is Cathie Wood short on GTBC?
In an interview with CNBC, Cathie Wood suggested that approval over Hashdex’s approval to convert its existing Bitcoin futures ETF into a spot fund could disrupt the dominance of the Grayscale Bitcoin Trust (GBTC) in the market. However, this move can bring a transformative shift in the crypto market.
Grayscale Bitcoin Trust has been a primary choice for institutional investors’ exposure to Bitcoin. Meanwhile, pending approval of Bitcoin ETF from the SEC will possibly offer a more liquid avenue for these investors.
Wood mentioned that GBTC has played a pivotal role till now. She added that “We had to own a security, so the only way they could buy into Bitcoin was through GBTC. This became the most liquid way to gain exposure to Bitcoin.” She anticipates a major shift with the potential approval of a Bitcoin ETF. However, she warned about the prospect of profit-taking as it will cool down post launch.
It is important to note that several firms including ARK Invest in partnership with 21 Shares are waiting for SEC approval as similar products are available in Canada and Europe.
ARK invest sells GBTC
Earlier, Todayq reported that the ARK Next Gen Internet ETF (ARKW) sold more than 48K shares of Grayscale Bitcoin Trust. The approximate worth of these shares stood around $1.34 million. However, Cathie Wood’s ARKW has already offloaded 72,509 share of GBTC in October.
As per the data, GBTC market price per share stood at $29.76, at the press time. The holding per share price stands at $33.70 and assets under management are calculated to be around $23.32 billion.