Renowned tech investor Cathie Wood’s Ark Invest firm has executed the largest disposal of Grayscale Bitcoin Trust (GBTC), the world’s largest bitcoin investment vehicle, since buying the product in 2020.
Wood dumped over 809,000 shares valued at more than $27 million per Monday’s closing price from her Next Generation Internet ETF (ARKW) fund, bringing combined holdings to around $117.25 million (£92.2 million).
Grayscale Bitcoin Trust’s weighting in the ARKW portfolio has reduced from more than 10% to less than 7% in just two months, with the disposals coinciding with a significant recovery in GBTC’s long-held discount.
As a closed-ended fund, GBTC’s shares cannot be redeemed. This played havoc with the fund’s share price during the crypto winter when bitcoin-linked investments fell out of favour.
Earlier this year, shares were worth just half as much as the bitcoin assets underpinning the trust.
But that discount has since tightened to less than 10%, presenting an enticing exit opportunity for shareholders.
With GBTC potentially being converted into an exchange-traded fund in 2024, its discount could close entirely, though Cathie Wood is not taking the chance.
GBTC remains the third-largest holding in the Next Generation Internet ETF for now, behind Roku and cryptocurrency exchange Coinbase Global Inc (NASDAQ:COIN).