Ark Invest Buys Shares of its Bitcoin ETF
According to Bloomberg analyst Katie Greifeld, Ark Invest is purchasing shares of its newly launched Bitcoin spot ETF. This comes after the company unloaded its holdings in the Grayscale Bitcoin Trust and ProShares ETF.
Ark’s Bitcoin ETFs
Ark Invest, led by Cathie Wood, manages several ETFs including the ARK Next Generation Internet ETF (ARKW). In the past, ARKW held shares of the Grayscale Bitcoin Trust but has sold them as it prepares for the launch of its own Bitcoin ETF.
The company sold the GBTC shares at a profit after buying them at a discount. Currently, ARKW has sold all of its GBTC shares and also sold some Coinbase shares.
The Bitcoin ETF
The ARK 21Shares Bitcoin ETF (ARKB) is a passive replication ETF managed by 21Shares. It consists solely of BTC and will remain that way permanently. The ARKW has now started buying ARKB shares to replace its previous holdings in GBTC.
However, the purchases of ARKB shares are currently limited compared to the market value of GBTC and Coinbase shares held by ARKW.
Ark and Bitcoin
Cathie Wood has been a proponent of Bitcoin within traditional finance. Ark Invest has been in existence since 2014 and their Innovation ETF became the largest actively managed ETF in December 2020. While not directly linked to the crypto world, Ark Invest started taking an interest in it in 2021.
Cathie Wood is bullish on BTC and believes its price could eventually rise above one million dollars.
Active Management ETFs
Passive replica ETFs like ARKB simply replicate the price trend of the assets they hold. Actively managed ETFs, on the other hand, continuously modify their portfolio to generate higher returns.
Despite negative performance during the 2022 bear market, Ark’s actively managed ETFs have generally had positive performance over the years.
Hot Take: Ark Invest Continues to Show Confidence in Bitcoin
Ark Invest’s decision to purchase shares of its own Bitcoin spot ETF demonstrates their continued confidence in the cryptocurrency. This move comes after unloading previous holdings in GBTC and ProShares ETF. Cathie Wood and Ark Invest have been early proponents of Bitcoin within traditional finance, and their actively managed ETFs have seen significant success. As they venture further into the crypto world, it will be interesting to see how their investments in Bitcoin and other cryptocurrencies evolve.
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