In a strategic shift, ARK Invest has continued to reduce its exposure to the Grayscale Bitcoin Trust (GBTC), jeopardizing GBTC’s position as the third-largest holding in ARK’s Next Generation Internet ETF (ARKW). On December 18, ARK executed a substantial sale of 809,441 GBTC shares from ARKW, amounting to a noteworthy $27.9 million at the closing share price of $34.5, as indicated in a trade notification obtained by Cointelegraph.
This ongoing divestment signals a further diminishing interest in GBTC within ARK’s portfolio, bringing GBTC perilously close to losing its third-place status within ARKW’s holdings. Despite the recent sell-off, as of December 18, GBTC still maintained its third position in ARKW, contributing 6.84% to the total assets with a market value of $117 billion. GBTC trails behind crypto exchange Coinbase and streaming company Roku, constituting 11% and 8% of ARKW’s assets, respectively.
Simultaneously, ARK has been strategically increasing its stake in Block, the financial payment processor co-founded by Jack Dorsey, the co-founder of Twitter (now X). On the same day as the GBTC sell-off, ARKW acquired an additional 347,692 Block shares valued at $25.7 million. With persistent buying, Block’s stock is inching closer to GBTC on the top four list, now representing 6.83% of ARKW’s total assets and boasting a market value of $116.9 billion.
Block made headlines on December 7 with the launch of its self-custody Bitcoin wallet, Bitkey, available as a mobile application or hardware storage and accessible in over 95 countries. The wallet’s initial global partners include Coinbase and Cash App, enhancing Block’s position in the evolving landscape of financial services.