Ark Invest, led by Cathie Wood, has sold off Grayscale Bitcoin Trust shares valued at approximately $3.8 million to purchase shares in Block, Inc. worth about $5.6 million, amidst a notable Bitcoin price increase.
Ark Invest Shifts Focus from Grayscale to Block
Ark Invest has offloaded Grayscale Bitcoin Trust shares to the tune of $3.8 million and channeled the proceeds into the acquisition of Block shares, investing approximately $5.6 million.
The transaction details divulged by Ark Invest show a clear pivot in their asset allocation, with the sale of 139,506 shares of GBTC and the purchase of 113,326 shares of Block, Inc. The timing of these transactions coincides with a substantial rise in Bitcoin’s price on October 24, prompting Ark to divest nearly $5.8 million from Coinbase and GBTC holdings.
This sell-off marks a continued pattern for Ark Invest, as it reduces its position in Grayscale shares for the second time in recent weeks. Despite this, Ark Invest maintains a significant stake in the cryptocurrency sector, holding the position of the second-largest shareholder in both Grayscale and Coinbase, highlighting its substantial influence and commitment to the cryptocurrency industry.
Block Thrives as Dorsey’s Vision Takes Shape, Ark Invest Eyes Bitcoin ETF
Block, formerly known as Square and spearheaded by ex-Twitter CEO Jack Dorsey, continues to make significant strides in the Bitcoin-centric payments landscape. The company, which owns the popular Cash app—a platform that simplifies the buying and trading of Bitcoin—has recently reported a robust financial performance.
In its latest earnings release, Block announced third-quarter revenue that exceeded market expectations. The company’s net sales soared to $5.62 billion, marking a notable 24% increase from the same period last year. This financial upswing reflects the growing mainstream acceptance of Bitcoin and the increasing utility of cryptocurrency in everyday transactions.
Ark Invest, one of the key investment firms championing cryptocurrency integration into traditional finance, is closely monitoring the regulatory environment for a green light on a spot Bitcoin ETF. Despite the SEC’s rejection of Ark21Shares’ ETF proposal in June 2021, Ark Invest remains at the forefront of the push for regulatory approval, indicating sustained confidence in the future of Bitcoin and cryptocurrency investment products.
Cathie Wood Advocates Bitcoin’s Versatility Amidst Economic Shifts
Cathie Wood also recently articulated a strong position on Bitcoin’s potential as a hedge in diverse economic scenarios. In a conversation with Bloomberg podcast host Merryn Somerset Webb, Wood expounded on the cryptocurrency’s viability in both inflationary and deflationary climates.
Her appearance on the podcast highlighted Bitcoin’s foundational advantages—particularly its decentralization and the transparency of its transactions—which, according to Wood, shield it from counterparty risk. She drew a stark contrast between Bitcoin’s open ledger system and the opaque operations of the traditional financial sector, suggesting that Bitcoin offers a level of security and openness that conventional financial instruments cannot match.