Cathie Wood's ARK cuts holdings in Grayscale Bitcoin Trust

As bitcoin prices edge nearer to $38,000 and beyond, Cathie Wood's ARK Invest firm is reducing its holdings in the Grayscale Bitcoin Trust (GBTC). Yahoo Finance Senior Markets Reporter Jared Blikre takes a closer look at the performances of ARK's various funds.

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Video Transcript

BRAD SMITH: Bitcoin jumping, jumping today as Destiny's Child would say, hovering just under $38,000 on this quiet holiday weekend. We have Jared Blikre here with the latest crypto news and perhaps his favorite Destiny's Child song as well. Hey, Jared.

JARED BLIKRE: Hey, Brad. I'll skip the musical puns for now. If we have any time on the back end, I'm happy to cycle through them. Talking about Bitcoin, I had a chance to just take a quick look at the price in the previous hour, as you said, of right around $38,000.

Now, these are the prior highs from 2021 still well off of those. But I like this longer term chart because it shows where all of this overhead price action has been. This just adds as a natural resistance layer.

Nevertheless, Bitcoin has started to power through it. And so far, we haven't seen too many signs of net selling activity really rip into the trend. And the trend here, as I've been saying, this year is definitely to the upside.

Also, there's been some circulation, some news about Cathie Wood's selling some Bitcoin in one of her ETFs. And this would be the ARK internet, the next generation internet ETF. And I just wanted to show. This is a chart that goes all the way back to the late 2014.

This is how much ARKW-- that is that next generation internet ETF. That is a position in GBTC. That's a Bitcoin proxy in the stock world. This blue line right here is a position value. And you can see currently well off of this high right here north of $2.5 million or actually north of $100 million. But it has been trending up. And that is since the beginning of 2023.

Meanwhile, she has been selling into that. That has to do with the price rising. And as the price has been rising, I believe that the fund has been taking in a little bit too much ARKW or at least it's been taking up too much of a position size.

So as Cathie Wood has done in the past, she has sold some of that, trying to keep that position size under 10%. And I thought it'd be interesting just to take a look at some of Cathie Wood's funds and how they've done because recently, they have really picked up. And this is what's happening today, ARKG in the forefront. But I wanna show you what's happened over the last month.

ARK Innovation, that's ARKK, that's up 21%. That is the number one performer here. Then we got the fintech ETF up almost 19%. ARKW, that was the one we were just taking a look at, the internet ETF that has GBTC in it. These have really come to life.

And I just wanted to show if you take a look at how far off of these are-- how far off these funds are from their highs, you can see ARKW is the least worst off, while if you take a look at how much they've rallied off of their lows, ARKW has been the most profitable here, even dwarfing the incredible run that ARKK and-- excuse, ARKF had had.

So bottom line here, it looks like Cathie Wood's finally benefiting from this price rise that we've seen in Bitcoin and just kind of making sure that her long-term estimates for Bitcoin are just kind of in the public consciousness. They've always been up there. I think that's what I'm dancing around right here. But are they far-fetched? Hard to say. We'll have to check back in a couple of years.

BRAD SMITH: Yes, Destiny's Child would say, I'm a survivor.

JARED BLIKRE: Thank you.

BRAD SMITH: Jared Blikre, thanks so much. Appreciate it.