ARK Investment transfers $16 million from ProShares to their own Bitcoin ETF

ARK Investment Management Sells ProShares Bitcoin ETF, Invests in ARK 21 Shares Bitcoin ETF

ARK Investment Management, led by Cathie Wood, recently divested from the ProShares Bitcoin ETF and reallocated approximately $16 million towards its own Bitcoin ETF. This strategic move involved selling shares of the ProShares Bitcoin ETF (BITO) and acquiring 365,427 shares of ARK 21 Shares Bitcoin ETF (ARKB).

Portfolio Reshuffling and Declining ARKB Value

As a result of this adjustment, ARKB now accounts for 1% of the ARK Next Generation Internet ETF (ARKW). However, the value of ARKB shares experienced a significant drop to $43.51 on Tuesday, down from the initial listing price of $49 on January 11.

Shift from Grayscale Bitcoin Trust to BITO and Ongoing Strategy

Prior to this move, ARK Investment Management had shifted its investments from the Grayscale Bitcoin Trust (GBTC) to BITO in December. This was done in anticipation of the U.S. approving direct Bitcoin ETFs. Cathie Wood expressed confidence in investing in an already approved fund rather than one pending approval. The recent portfolio reshuffling aligns with ARK’s ongoing strategy to optimize its position in the evolving cryptocurrency investment landscape.

Low Fees and Coinbase as Custodian

The ARK 21Shares Bitcoin ETF currently offers one of the lowest fees at 0.21%. Additionally, leading crypto exchange Coinbase serves as the custodian for ARK’s ETF.

Hot Take: ARK Investment Management Shifts Focus to In-House Bitcoin ETF

ARK Investment Management, under the leadership of Cathie Wood, has made a strategic decision to divest from the ProShares Bitcoin ETF and invest in its own ARK 21 Shares Bitcoin ETF. This move demonstrates ARK’s confidence in its in-house product and its commitment to optimizing its position in the cryptocurrency investment landscape. While the value of ARKB shares has experienced a decline, ARK continues to prioritize its strategy and align its investments accordingly. With low fees and Coinbase as the custodian, ARK’s Bitcoin ETF offers investors an attractive option for exposure to the cryptocurrency market.