The investment fund made a huge investment in Coinbase, buying up $9.2 million worth of shares. They also sold off $27.6 million worth of stock, making a tidy profit in the process.
ARK Invest, led by Cathie Wood, has been one of the most bullish investment firms when it comes to bitcoin and blockchain technology.
The company has been a long-time holder of GBTC, but yesterday decided to sell its remaining holdings and invest in ProShares Bitcoin Strategy ETF (BITO).
The stake in BITO is valued at $9.2 million based on closing prices. In addition, ARK Invest also sold $27.6 million worth of Coinbase (COIN) stock and bought 20,000 shares of the Ark 21Shares Active Bitcoin Future Strategy ETF.
This shows that ARK Invest is still bullish on bitcoin and believes that the ProShares ETF is a better investment.
The ProShares ETF, which started trading in October 2021 as the first U.S. bitcoin-linked ETF, now accounts for 5.03% of the ARK Next Generation Internet ETF (ARKW), its sixth-largest holding.
The fund no longer holds any GBTC shares, with the last reported sale on Dec. 20. At just under 12%, Coinbase remains the fund’s largest holding.
The recent change in the amount of bitcoin held by two investment firms has sparked speculation that the Securities and Exchange Commission (SEC) will soon allow for the listing of bitcoin-based exchange-traded funds (ETFs) on U.S. exchanges.
Grayscale Investments LLC, a digital asset management firm, has seen a decrease of 2,000 bitcoin from its total holdings, while Ark 21 Inc., a New York-based venture capital firm, has seen its bitcoin stockpile rise by 1,000.
These changes have occurred in anticipation of the SEC’s ruling on bitcoin ETFs, which is expected to be released next month.
Bitcoin is up more than 150% in 2020, after a brutal 2022. The crypto market is on a rebound, with Bitcoin climbing more than 150% so far this year.
This is great news for Bitcoin investors, who are seeing their investment grow at a rapid pace. With Bitcoin continuing to climb, it’s clear that the crypto market is back on track and ready for a bright future.
BlackRock and other large asset managers are waiting for regulatory approvals from the U.S. Securities and Exchange Commission (SEC) to launch a string of derivative-based products, such as ETFs that track the spot price of Bitcoin.
ARK and 21Shares have refiled their paperwork with the SEC for a bitcoin ETF, seeking approval after the regulator said their initial prospectus did not meet the requirements.
This new ETF would prevent fraud and market manipulation, making it a safer investment for those looking to get into the bitcoin market.
Coinbase, one of the world’s leading cryptocurrency exchanges, has seen its stock prices surge this year, with investors betting on the increasing popularity of digital currencies.
Separately, ARK Invest sold shares of Coinbase Global worth roughly $27.6 million, based on the crypto exchange’s last closing price. Shares in Coinbase have rallied more than 400% so far this year.
Earlier this week, software firm MicroStrategy also disclosed it had bought bitcoin worth about $615.7 million in cash. This shows that there is a growing interest in the cryptocurrency market, with more and more companies investing in it.