By George Ward
Changing Perceptions Amid Market’s Bullishness
According to on-chain data analytics, Ark Next Generation Internet ETF, an actively managed fund under the custody of Ark Investment Management, has been steadily selling its Grayscale Bitcoin Trust (GBTC) shares since October 23. Since then, the fund has sold over 700,000 shares of its Bitcoin Trust.
According to the ETF provider’s daily trading data, Ark sold 36,168 shares of Bitcoin Trust on Wednesday, November 22. The Grayscale Bitcoin Trust is a digital currency investment product that allows individual and institutional investors to purchase Bitcoin (BTC).
More importantly, Ark Invests is a closed-end trust that uses Bitcoin as its underlying asset and tracks its price performance. The trust is intended to track BTC’s market price while incurring fewer fees and expenses.
Actively managed funds are mutual funds or exchange-traded funds handled by a manager who makes investment decisions and changes the portfolio allocations of the fund. These funds seek to achieve their investment objectives, including outperforming or hedging against market decline or corrections.
Shedding Bitcoin Holdings
Ark Invest also sold significant cryptocurrency assets on two separate occasions last month. According to media reports, the Ark Next Generation Internet ETF sold $1.8 million in Grayscale Bitcoin Trust (GBTC) shares and $1.7 million in Coinbase Global Inc. (COIN) equities.
The company reportedly sold over 100,000 GBTC units and $3.3 million in COIN shares the day before. CEO of Ark Invest, Cathie Wood, stated at the Sohn Australia conference on Friday that Grayscale Bitcoin Trust remains her favorite investment.
It’s worth noting that according to previous data, Ark was the fourth largest holder of the trust, with 5.6 million units as of September 30.
Ark Invest’s Latest Research Report
Crypto assets have the potential to “rival and redefine traditional asset classes,” according to the 2023 edition of Ark Invest’s annual research report “Big Ideas.” According to the report, cryptocurrency could become a $25 trillion asset class by 2030.
The CEO of Ark Invest believes Bitcoin will continue to outperform other traditional asset classes because of its strong fundamentals. She also believes Bitcoin will end the decade at $1 million.
However, it is essential to note that this is only a prediction, not a guarantee of the asset’s next peak. Furthermore, Ark Invest’s research report emphasizes the potential for crypto assets to reshape traditional asset classes.
Cathie Wood’s prediction that Bitcoin will end the decade trading at $1 million reflects her faith in the token’s future. However, some other BTC advocates don’t share a similar view about BTC’s price trading at $1 million by 2033.
Meanwhile, the study emphasizes the risks of investing in cryptocurrencies and warns that traders should consider navigating the market cautiously. Wood’s bullish Bitcoin predictions clash with Ark Invest’s BTC investment moves for its investors.
BTC-XAU Ratio On An Uptrend
In a related development, the on-chain analytics platform, Glassnode, has revealed that the Bitcoin-gold (XAU) ratio has started a fresh rally. While the ratio stands at 18.8 at the time of writing, the platform predicts that the ratio could reach three figures soon.
Should that happen, 1 BTC would be 100x more valuable than an ounce of gold. More importantly, BTC would trade at over $199K. Based on the BTC-altcoin cycle indicator, the Glassnode co-founders also believe the altcoin rally season is imminent.
The indicator is at 85 at the time of writing, indicating the start of a fresh rally. A value of below 50 suggests that BTC is overperforming altcoins, and a BTC rally season is imminent.