ARK Invest, the investment firm led by Cathie Wood, has been making significant moves in the cryptocurrency market. In the past week, the firm has been offloading shares of the ProShares Bitcoin Trust ETF (BITO) while accumulating its own spot bitcoin exchange-traded fund.
According to reports, ARK Invest sold a total of 2,226,191 shares of the bitcoin futures ETF since January 19, amounting to approximately $42.8 million at Thursday’s closing price of $19.22. These shares were sold from its Next Generation Internet ETF (ARKW). On the other hand, the firm has been buying shares in the ARK 21 Shares Bitcoin ETF (ARKB), acquiring 1,563,619 shares worth around $62.3 million.
The ARKB closed on Thursday at $39.87, showing a negligible increase of 0.68% for the day. This indicates that ARK Invest’s investment in its own ETF has remained relatively stable.
It is worth noting that ARK Invest had previously held shares of the Grayscale Bitcoin Trust (GBTC) but offloaded them late last year in anticipation of the approval of spot bitcoin ETFs in the United States. The firm had plans to swap its BITO shares for a spot bitcoin ETF once the approval was granted.
Currently, ARKW holds $91.4 million worth of ARKB, accounting for a 5.98% weighting of the fund’s total value. On the other hand, its BITO shares have significantly decreased to just 366,128, with a value of $7 million, representing a 0.46% weighting.
This move by ARK Invest reflects the firm’s confidence in the potential of bitcoin and its desire to have exposure to the cryptocurrency market through its own ETF. It also demonstrates the firm’s strategy of actively managing its portfolio to take advantage of market opportunities.
The cryptocurrency market has been experiencing significant growth and volatility in recent years, with bitcoin being one of the most prominent digital assets. The approval of spot bitcoin ETFs in the United States has been highly anticipated by investors, as it would provide a regulated and accessible way to invest in bitcoin.
ARK Invest’s decision to offload its BITO shares and acquire its own bitcoin ETF suggests that the firm believes in the long-term potential of bitcoin and wants to have direct exposure to the cryptocurrency. This move also aligns with ARK Invest’s overall investment philosophy of investing in disruptive technologies and innovative companies.
As the cryptocurrency market continues to evolve, it will be interesting to see how ARK Invest’s strategy plays out and whether other investment firms follow suit in creating their own ETFs to gain exposure to bitcoin and other digital assets.