Cathie Wood, Boaz Weinstein Among Winners From Bitcoin Fund Bet
A host of Wall Street funds have minted profits riding the recent crypto fever after Grayscale Investments LLC snagged a big win over America’s top financial watchdog in its bid to create a US Bitcoin ETF.
Money managers including the likes of Cathie Wood and Boaz Weinstein appear to have been well positioned for the crypto firm’s victory, after scooping up shares of the Grayscale Bitcoin Trust at the height of its recent distress.
The court ruling late last month against the Securities and Exchange Commission spurred a rally for GBTC, as the $16.6 billion product is known, on bets it could soon be transformed into the first US spot Bitcoin ETF.
Those gains dramatically narrowed the trust’s discount to underlying assets. While GBTC still trades at a price below the value of its holdings, it means anyone who invested at a steeper markdown is sitting pretty.
An analysis of industry filings shows that firms including Wood’s ARK Investment Management, Weinstein’s Saba Capital Management, and the hedge fund Fir Tree built sizable stakes in GBTC in the months before the verdict.
“We saw the Grayscale case, we saw some of the judge’s comments and were saying, ‘The SEC’s going to lose this, and that will help this discount,’” Wood said in an interview. “We thought the discount was going to close — and it has closed some, but not altogether.”