Cathie Wood’s Ark Invest Buys ARKB Spot Bitcoin ETF Units
Cathie Wood’s asset management firm, Ark Invest, has sold over $10 million worth of ProShares Bitcoin Strategy ETF (BITO) shares and invested in the newly launched Ark 21Shares spot Bitcoin ETF (ARKB). This move is part of Ark Invest’s strategy to increase its holdings in ARKB and potentially extend its active fund management strategy to other crypto exchange-traded funds (ETFs).
Ark Invest Continues to Reduce BITO Holdings
On January 19, Ark Invest sold 510,337 shares of BITO and 45,052 AMD shares to purchase 316,526 ARKB units. Additionally, on January 18 and January 16, Ark Invest sold a significant number of BITO units from the ARK Next Generation Internet ETF (ARKW) to buy ARKB units. In total, ARKW has purchased over 1 billion ARKB units worth $43 million in just one week.
BITO and ARKB Price Movements
The price of BITO closed 1.88% higher at $20.09 on Friday but experienced a 9.26% drop during the week due to outflows from spot Bitcoin ETFs and selling by ARKW. On the other hand, the price of ARKB closed 1.90% higher at $41.73 but saw a 3.56% fall throughout the week. According to Ark Invest data, as of January 19, ARKB holds Bitcoin worth $309.66 million.
Cathie Wood Stays Bullish on Bitcoin
Cathie Wood remains bullish on Bitcoin and believes that the size of the Bitcoin network surpasses the combined cloud infrastructure of Amazon, Google, and Microsoft. This sentiment was echoed by Elon Musk, who responded to Wood’s statement with a “Wow.” The price of Bitcoin has increased by 1% in the past 24 hours and is currently trading at $41,659.
Hot Take: Ark Invest Shifts Focus to ARKB
Ark Invest’s decision to sell BITO shares and invest in ARKB reflects its confidence in the potential of spot Bitcoin ETFs. As Ark Invest continues to reduce its BITO holdings, it is positioning itself for further growth in the crypto market. Cathie Wood’s bullish stance on Bitcoin further reinforces the positive sentiment surrounding the cryptocurrency. With the increasing popularity of spot Bitcoin ETFs, it will be interesting to see how Ark Invest expands its active fund management strategy in the crypto ETF space.
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