Ark Invest, led by fund manager Cathie Wood, has made a strategic decision to trade bitcoin exchange-traded products. The firm has sold its holdings in the Proshares Bitcoin Strategy ETF (BITO) and reinvested the funds in its own Ark 21shares Spot Bitcoin ETF (ARKB) to strengthen its position.
it begins
Ark sold $BITO to buy its own spot Bitcoin ETF $ARKB in its Next Generation Internet ETF today pic.twitter.com/5WYEj564C0
— Katie Greifeld (@kgreifeld) January 17, 2024
Cathie Wood’s ARK Next Generation Internet ETF (ARKW) reduced its BITO holdings to increase its investment in ARKB. As a result, $15.9 million worth of ARKB shares were purchased. At the end of the trading day, ARKB shares closed at $43.51, experiencing a slight 0.80% decrease.
Before spot bitcoin ETFs gained approval in the U.S., ARKW had invested in futures-based cryptocurrencies. Furthermore, ARKW initially acquired shares in the ARK 21shares Active Bitcoin Futures Strategy ETF (ARKA) and the BITO shares were acquired by liquidating the Grayscale Bitcoin Trust (GBTC) holdings. This temporary strategy was implemented during the transitional phase using highly liquid ETFs.
In addition to repositioning within the crypto market, Ark Invest has been adjusting its overall portfolio. The firm has been selling its Coinbase (COIN) holdings to diversify into other investments such as Tesla (TSLA). Cathie Wood remains optimistic about bitcoin, projecting a price of $1.5 million by 2030.
Hot Take: Ark Invest Actively Adjusts Crypto Portfolio
Ark Invest’s latest move reflects its continued interest in the crypto market. By redirecting funds to its in-house Bitcoin ETF, the firm demonstrates confidence in its own investment vehicles. Additionally, the firm’s strategic decision to diversify its portfolio indicates a proactive approach to capitalizing on new opportunities. Cathie Wood’s bullish stance on bitcoin further reinforces her belief in its long-term potential. With the market evolving and regulatory landscapes changing, it remains crucial for investors to adapt and make informed decisions that align with their investment strategies.
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