ARK Invest, the investment firm led by Cathie Wood, has purchased $15.9 million worth of shares in its own recently-listed spot bitcoin exchange-traded fund (ETF). The firm added 365,427 shares of the ARK 21Shares Bitcoin ETF (ARKB) to its Next Generation Internet ETF (ARKW) on Tuesday.
The move comes as ARKB shares closed at $43.51 on Tuesday, down approximately 11% from its listing price of $49 on January 11. This purchase by ARK Invest demonstrates its confidence in the long-term potential of the ARKB ETF, despite the recent decline in its price.
Interestingly, ARK Invest also sold $15.8 million worth of shares in the ProShares Bitcoin Strategy ETF (BITO), the first ETF linked to the bitcoin futures market to list in the United States. This decision to sell off its BITO holdings aligns with ARK Invest’s strategy of focusing on spot bitcoin ETFs, which are considered more secure than futures-based ETFs.
In fact, ARK Invest had previously sold its holdings in the Grayscale Bitcoin Trust (GBTC) in December, prior to GBTC’s conversion into a bitcoin ETF. The firm swapped its GBTC shares for BITO in anticipation of the approval of spot bitcoin ETFs in the U.S. According to Cathie Wood, an already approved fund was deemed more secure than waiting for approval.
It was widely expected that ARK Invest would eventually swap some of its BITO shares for a spot bitcoin ETF shortly after its approval. This recent purchase of its own ARKB shares further reinforces ARK Invest’s commitment to the potential of spot bitcoin ETFs.
The move by ARK Invest also highlights the growing interest and investment in the cryptocurrency market. As more institutional investors and firms like ARK Invest enter the space, it further legitimizes and solidifies the position of cryptocurrencies, particularly bitcoin, as a viable investment asset.
In related news, it was recently reported that BlackRock, the world’s largest asset manager, is considering following the launch of a bitcoin ETF with an Ethereum ETF. This indicates the increasing acceptance and recognition of cryptocurrencies by major financial institutions.
Overall, ARK Invest’s purchase of its own bitcoin ETF shares demonstrates its confidence in the potential of the cryptocurrency market and its commitment to providing investors with exposure to this emerging asset class. As the market continues to evolve and regulatory approvals pave the way for more ETFs, it will be interesting to see how ARK Invest and other investment firms navigate and capitalize on the opportunities presented by cryptocurrencies.