Ark Invest Liquidates $5.8M in Coinbase & Grayscale Amid Bitcoin Bull

Ark Invest, a leading investment firm in the disruptive innovation space, has sold 42,613 Coinbase (COIN) shares and 100,739 Grayscale Bitcoin Trust (GBTC) shares, which were worth around $5.8 million, according to Ark Invest’s trading activity report today.

The sales took place through ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ET, as reported. COIN and GBTC both ended Monday on a high note, with COIN closing at $77.21 and GBTC closing at $24.70.

Taking Profits

Shares of the two companies have risen amid cryptocurrency market euphoria. Bitcoin (BTC) has surpassed $34,000, up over 12% in one day as traders bet on the imminent ETF approval.

As reported on Monday, BlackRock’s spot Bitcoin ETF, officially known as iShares Bitcoin Trust, has been listed on the Depository Trust & Clearing Corporation (DTCC), the organization that provides clearing and settlement services for assets.

Bloomberg ETF analyst Eric Balchunas said it was the first time a cryptocurrency ETF appeared on DTCC. BlackRock’s spot offering is one of over a dozen that are currently under review by the US Securities and Exchange Commission (SEC).

The SEC has been postponing all pending spot Bitcoin ETF approval applications in recent months, but the DTCC listing suggests that the regulator may be getting closer to approving a Bitcoin spot ETF. Cathie Wood’s firm and 21Shares previously joined forces to apply for approval of their spot Bitcoin ETF product.

As Bitcoin breaks through $34,000, MicroStrategy’s massive Bitcoin investment portfolio also sees significant profits. The firm’s holding currently stands at 158,245 BTC, with an average purchase price of $29,870 per BTC. Their Bitcoin investment has reached a profit of approximately $748.5 million as Bitcoin is trading at $34,600.

Still Nursing Losses

Since last year, MicroStrategy’s Bitcoin holdings have recorded losses, up to 45% at times and has only recently begun to turn a profit.

The crypto market, particularly Bitcoin has suffered major setbacks due to a series of traumatic events, such as the collapses of LUNA/UST, Celsius, FTX, Three Arrows Capital, and the global economic recession.

Now the upcoming Bitcoin halving and a series of positive signals about spot ETFs have turned the table, bullish momentum builds up as investors eye an altcoin bull run following the Bitcoin rally.

Ethereum is also up by 9.5%, hovering around $1,840 while Solana (SOL) breaks the $30 resistance level. Other altcoins also welcome a green Tuesday, with Mina (MINA) as the biggest gainer as its price skyrockets over 112% after Upbit’s listing announcement.

BlackRock, Grayscale, or ARK 21Shares?

There is widespread speculation that BlackRock could be the first to gain spot Bitcoin ETF approval. BlackRock is the world’s largest asset manager, with over $10 trillion in assets under management. The company has a strong track record of success in launching ETFs

Grayscale has won a major victory over the SEC in its lawsuit to convert GBTC into a spot Bitcoin ETF. In July 2023, a federal court ruled that the SEC’s rejection of Grayscale’s application was arbitrary and capricious.

Under the court verdict, the SEC must now reconsider its decision and either approve Grayscale’s application or provide a more detailed explanation of why it is rejecting it. The SEC has been rough on anything crypto, but that may be coming to an end soon.

Meanwhile, the SEC has a final deadline of January 10, 2024, to make a decision on Ark Invest’s application for a spot Bitcoin ETF, while other applications have a deadline of three months later. Ark Invest CEO Cathie Wood has predicted that the SEC will approve a number of applications simultaneously.

Many entities have filed applications for spot bitcoin trading offerings, but none of them have been approved by the SEC. The SEC repeatedly cited concerns about market manipulation and volatility as reasons for rejecting these applications.