Ark Invest Asset Management Company Takes Giant Leap With 500K Bitcoin Investment
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During the most recent crypto market rebound, which began with the new year, Bitcoin increased by more than 40%. As a result, the value of Grayscale Bitcoin Trust increased. It is also worth noting that the rebound is said to have helped reduce the GBTC discount from 50% to 40%.
Cathie Wood’s Ark Invest sold approximately 500,000 GBTC shares. GBTC’s weight in the portfolio increased despite the sale.
***Just In***-🚨Cathie Woods Ark Invest dumps 500K GBTC shares and adds Coinbase stock to portfolio #Crypto #cryptocurrency #Bitcoin #Coinbase
— Crypto Macro (@cryptomacro14) January 23, 2023
Ark Invest Purchased Shares of GBTC
Ark Invest made investments in GBTC in November 2022 despite Grayscale’s lack of transparency. The company increased its ARK Next Generation Internet ETF by around 450,000 shares.
Interestingly, the decline in ARKW’s GBTC shares came at the same time as the recovery in share value. This suggests that profit-taking could only be temporary. According to a separate assertion in Ark’s December report, the stake reduction was consistent with the “bearish perspective” on GBTC.
Cathie Wood's ARK Buys $1.5M of Shares in Grayscale's Bitcoin Trust at Record Discount
Cathie Wood's investment firm ARK Invest bought another 176,945 GBTC shares ($1.46 million) on Monday as the crypto market slumped to a two-year low.https://t.co/JzCkU8GLxp
— DAILY CRYPTO NEWS (@keremkaradagcom) November 22, 2022
The company was particularly concerned about Genesis Global, which declared bankruptcy and claimed to owe creditors between $1 billion and $10 billion. Unfortunately, Grayscale has yet to transform its bitcoin trust into an ETF owing to SEC rejections. Moreover, GBTC’s discount can be reset to zero if the SEC accepts the conversion.
Ark Improves Its Ranking on Coinbase
As we previously stated that the company recently sold GBTC shares, while at the same time, Coinbase (COIN) shares were accumulating. In 2023, ARKW also acquired 320,000 shares for $17.6 million.
Following this increase, the weight of Coinbase shares in the Ark Investment portfolio increased to 3.62% on January 23rd from 2.72% at the start of the year.
Due to the dangers associated with DCG, other companies including Greenery Financial have begun to change their GBTC exposure. Any negative news will probably cause uncertainty and worry in the crypto community.
