Cathie Wood's Ark Invest Dumps ProShares Strategy ETF (BITO) for ARKB Spot Bitcoin ETF Acquisition

Ark Invest Sells ProShares Bitcoin Strategy ETF to Buy ARKB Spot Bitcoin ETF

Ark Invest, the asset management firm founded by Cathie Wood, has made a strategic move by selling its holdings in ProShares Bitcoin Strategy ETF (BITO) and purchasing units in Ark 21Shares Spot Bitcoin ETF (ARKB). This decision was made in response to evolving market conditions.

Details of the Transaction

On January 16, Ark Invest sold 757,664 shares of BITO worth $15.8 million and used the funds to buy 365,427 units of ARKB also valued at $15.8 million.

Adjusting Holdings

Cathie Wood reduced her exposure to BITO through the ARK Next Generation Internet ETF as part of the strategy to increase holdings in ARKB. Ark Invest has set a target of $4 billion for its own ARKB.

Price Movements

The price of BITO closed at $20.91, down 0.71%, while ARKB closed 0.80% lower at $43.51.

Parking Spot

Prior to the approval of spot Bitcoin ETFs, ARK Next Generation Internet ETF purchased shares of ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA). It also bought shares of BITO by selling its holdings in Grayscale Bitcoin Trust (GBTC). This move is likely a temporary measure for transitioning purposes.

ARKW’s Target

ARK Next Generation Internet ETF still holds enough shares of BITO to meet its target for its spot Bitcoin ETF. The crypto market conditions have been challenging since the introduction of spot Bitcoin ETFs on Wall Street.

Cathie Wood’s Bitcoin Outlook

Cathie Wood remains bullish on Bitcoin, with a target price of $1.5 million by 2030. Other experts also predict that the BTC price will surpass $100,000 after the Bitcoin halving in April.

Hot Take: Cathie Wood’s Strategic Moves in the Crypto Market

Cathie Wood’s Ark Invest continues to make strategic moves in the crypto market, adjusting its holdings and increasing exposure to Bitcoin through different ETFs. By selling shares of ProShares Bitcoin Strategy ETF and purchasing units in Ark 21Shares Spot Bitcoin ETF, Ark Invest is actively responding to changing market conditions. This demonstrates their confidence in the future of Bitcoin and their commitment to maximizing returns for their investors. With Cathie Wood’s optimistic outlook on Bitcoin’s long-term potential, it will be interesting to see how these strategic moves play out in the coming months and years.