On Oct. 23, Ark Invest reduced its crypto-related holdings, shedding 42,613 shares of Coinbase and a substantial 100,739 shares of the Grayscale Bitcoin Trust (GBTC).

The move was executed amid a Bitcoin-led crypto rally that has captured the attention of investors worldwide.

Ark Invest Sells Holdings

According to an update from the fund manager’s trading desk on Monday, Ark’s Next Generation Internet ETF (ARKW) led the way by offloading 32,158 shares of Coinbase, while the Ark Fintech Innovation ETF sold 10,455 shares of the popular cryptocurrency exchange.

Simultaneously, ARKW made a divestment of 100,739 GBTC shares. These transactions amounted to approximately $5.8 million in value, based on Coinbase’s closing price of $77.21 and GBTC’s closing price of $24.71 on Monday.

Meanwhile, Ark Invest recently updated its spot Bitcoin ETF filing in response to feedback from the SEC. Presently, approximately 12 spot Bitcoin ETFs are awaiting approval by the agency. Last month, the regulatory body delayed all pending spot Bitcoin ETF applications, extending the ongoing review process by at least another month.

Bitcoin’s Meteoric Rise

The decision to reduce holdings coincided with Bitcoin’s price surge, which saw the cryptocurrency crossing the $35,000 mark. This notable increase was driven by growing optimism regarding the potential approval of spot Bitcoin exchange-traded products (ETFs).

Bitcoin’s value soared by 10% to reach 1-1/2 year highs on Monday, causing a ripple effect in the crypto market. Crypto-related stocks, including Coinbase Global (COIN.O), Marathon Digital (MARA.O), and MicroStrategy (MSTR.O), also witnessed gains.

“I don’t think anyone expected the level of price action we’re seeing, and those investors who were shorting Bitcoin in the $33,000 plus range are certainly feeling the pain of that surprise today,” commented a Bitwise Asset Management analyst, reflecting the market sentiment.

The recent surge in Bitcoin’s popularity can be attributed to the introduction of BlackRock’s highly anticipated spot Bitcoin ETF, known as the iShares Bitcoin Trust. This ETF’s inclusion on the Depository Trust and Clearing Corporation’s list indicates a potential approval for a Bitcoin ETF soon, adding to the growing optimism in the cryptocurrency market.

According to the latest data from CoinGecko, Bitcoin is trading at  $34,673.29, reflecting a 21.3% increase over the past seven days.