Cathie Wood’s Ark Invest recently sold some of the shares held in its spot Bitcoin ETF product. This marks the firm’s initial share sale in ARKB since the spot Bitcoin ETFs debuted in January.
Cathie Wood Moves Strategically to Adjust Fund Weightings
On Wednesday, the investment firm offloaded a substantial amount held by the Next Generation Internet ETF (ARKW). The shares, 118,209 ARKB spot Bitcoin ETF, valued at $7.76 million was a move to adjust the weightings of the fund. Ark Invest CEO Cathie Wood revealed in an interview that this move is strategic to keep the firm’s fund diversified. Above all, it is to make sure no single holding is above 10% in the firm’s ETF portfolio, she added.
As of July 24, ARKB is the largest holding in the ARKW ETF, and the fund has seen positive growth over the past few months. Wood emphasized that there might be more ARKB sell-offs in the near future. However, she noted that it is dependent on whether the value keeps rising compared to other holdings in the market. Notably, the firm has not sold any of its ARKB shares since the launch of Spot Bitcoin ETF in January.
This latest update followed Ark Invest stepping back from the Ethereum ETF race before the product could hit the market. The firm ended partnership with its peer 21Shares recently, citing the need to reassess its investment strategy.
Fear Trails Bitcoin Price Fluctuation
Furthermore, each ARKB was sold for $65.62 when Bitcoin almost dropped by over 3% recently. Currently, the coin is trading at $64,151.35, down by 3.92% as per CoinMarketCap data. While BTC is fighting for a price rebound, it is garnering global widespread adoption. Most recently, Ferrari, the luxurious sports car company said it is now accepting BTC payment option for its Europe dealers.
Also, the news of the Mt. Gox creditors getting paid in Bitcoin has created more fear among traders over imminent selloffs. However, there are expectations the trend will change in the near future.
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