ARK Invest Buys 4.3 Million Shares of ProShares Bitcoin Strategy ETF
In Brief
ARK Invest acquired 4.3 million shares of BITO in anticipation of the potential approval of a spot Bitcoin ETF in January 2024.
Investment management firm ARK Invest acquired 4.3 million shares of the ProShares Bitcoin Strategy exchange-traded fund (BITO), which tracks the price of futures linked to the world’s largest cryptocurrency.
The ProShares ETF, initiated in October 2021 as the first United States Bitcoin exchange-traded fund (ETF), now represents 5.03% of the ARK Next Generation Internet ETF (ARKW), ranking as its sixth-largest holding. The approximate value of ARK Invest’s stake in BITO is $92 million.
To fund this acquisition, ARK Invest sold shares of Coinbase Global valued at around $27.6 million. This move followed the sale of over $200 million in Coinbase shares by the company over the past month. Coinbase shares have surged more than 400% this year.
These portfolio adjustments come ahead of the anticipated decision by the United States Securities and Exchange Commission (SEC) next month regarding the potential approval of spot Bitcoin ETFs for trading in the United States.
Asset Management Firms Await SEC Approval
Approximately thirteen asset management companies are presently awaiting regulatory approvals from SEC to introduce a series of derivative-based products, including ETFs tracking the spot price of Bitcoin.
ARK Invest in collaboration with 21Shares, recently refiled documentation to the SEC — seeking approval for a spot Bitcoin ETF named ARK 21Shares Bitcoin ETF. This move followed the regulator’s statement that the initial prospectus did not fulfill the requirements to prevent fraud and market manipulation.
Earlier this week, software firm MicroStrategy also revealed its purchase of Bitcoin valued at approximately $615.7 million in cash ahead of the upcoming SEC decision.
ARK Invest’s latest acquisition highlights the company’s strategic moves within the evolving cryptocurrency landscape, aligning with the broader anticipation of SEC Bitcoin ETF approval.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
