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Ark Invest Buys $15.9 Million Worth of Its Own Spot Bitcoin ETF

January 19, 2024 | by stockcoin.net

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Ark Invest, led by fund manager Cathie Wood, has made a strategic move in the world of cryptocurrencies. The firm has sold its holdings in the Proshares Bitcoin Strategy ETF and redirected these funds to bolster its own Ark 21shares Spot Bitcoin ETF. This reshuffling involved reducing its stake in BITO in order to increase its investment in ARKB, resulting in the purchase of $15.9 million worth of shares. These strategic shifts within the cryptocurrency domain reflect Ark Invest’s commitment to diversifying its portfolio, while Wood maintains an optimistic outlook on the future of bitcoin.

Cathie Wood’s Ark Invest Redirects Millions to In-house Bitcoin ETF

Ark Invest, led by fund manager Cathie Wood, has recently made a significant move in the world of cryptocurrency. The firm has transitioned $15.9 million from the Proshares Bitcoin Strategy ETF (BITO) to its in-house Ark 21shares Spot Bitcoin ETF (ARKB). This decision reflects Ark Invest’s confidence in the potential of bitcoin and their belief in the value of their own ETF.

Ark Invest Buys $15.9 Million Worth of Its Own Spot Bitcoin ETF

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Background

Before this recent reshuffling of holdings, Ark Invest had invested in bitcoin through the Proshares Bitcoin Strategy ETF and the Grayscale Bitcoin Trust. However, with the approval of spot bitcoin ETFs in the U.S., Ark Invest saw an opportunity to realign its investments and focus on its own in-house ETF. This strategic move allows Ark Invest to have greater control over its bitcoin holdings and potentially generate higher returns.

Ark Invest’s Trades

The reshuffling of Ark Invest’s holdings involved the reduction of its stake in the Proshares Bitcoin Strategy ETF and the increase in its investment in the Ark 21shares Spot Bitcoin ETF. By selling off its BITO shares, Ark Invest was able to free up funds to purchase additional shares of ARKB. This transaction amounted to $15.9 million and demonstrated Ark Invest’s commitment to its own ETF.

Reshuffling of Holdings

The decision to redirect funds from the Proshares Bitcoin Strategy ETF to the Ark 21shares Spot Bitcoin ETF was a strategic move by Ark Invest. By reshuffling its holdings, Ark Invest was able to consolidate its bitcoin investments and focus on its in-house ETF. This reshuffling allowed for a more streamlined approach to managing its bitcoin holdings and aligning them with Ark Invest’s long-term investment strategies.

Purchase of ARKB Shares

As part of the reshuffling of holdings, Ark Invest purchased $15.9 million worth of shares in its own Ark 21shares Spot Bitcoin ETF. This purchase demonstrated Ark Invest’s confidence in the potential of its in-house ETF and its belief that it can generate strong returns. By investing in its own ETF, Ark Invest is also able to align its financial interests with the success of the fund.

Impact on ARKB Share Price

Following the purchase of $15.9 million worth of ARKB shares, the share price of ARKB experienced a slight decrease of 0.80%. This minor fluctuation in price is not unexpected in the world of investment and does not detract from the overall confidence that Ark Invest has in its in-house Bitcoin ETF. It will be interesting to see how the share price of ARKB evolves in the future as more investors become aware of Ark Invest’s move.

Previous Investments in Futures-based Cryptocurrencies

Before the approval of spot bitcoin ETFs in the U.S., Ark Invest had made investments in futures-based cryptocurrencies. This included acquiring shares of the ARK 21shares Active Bitcoin Futures Strategy ETF (ARKA) and the Proshares Bitcoin Strategy ETF (BITO). These investments allowed Ark Invest to gain exposure to the cryptocurrency market while waiting for spot bitcoin ETFs to be approved.

Diversification of Portfolio

In addition to the reshuffling of its cryptocurrency holdings, Ark Invest has been actively diversifying its overall portfolio. This has included offloading holdings in Coinbase (COIN) and increasing investments in other companies such as Tesla (TSLA). By diversifying its portfolio, Ark Invest aims to reduce risk and capitalize on various investment opportunities.

Offloading of Coinbase Holdings

As part of its diversification strategy, Ark Invest has been selling off its holdings in Coinbase. This decision was driven by the desire to allocate funds to other investments that Ark Invest believes have greater growth potential. While Coinbase has been a significant player in the cryptocurrency industry, Ark Invest believes that there are other investment opportunities that offer a higher return on investment.

Cathie Wood’s Bullish Stance on Bitcoin

Cathie Wood, the founder and CEO of Ark Invest, has consistently maintained a bullish stance on bitcoin. She has projected a bitcoin price of $1.5 million by 2030, indicating her strong belief in the long-term potential of the cryptocurrency. Wood’s optimism and confidence in bitcoin are reflected in Ark Invest’s decision to redirect millions of dollars to its in-house Bitcoin ETF.

Closing Thoughts

Ark Invest’s decision to redirect $15.9 million from the Proshares Bitcoin Strategy ETF to its in-house Ark 21shares Spot Bitcoin ETF demonstrates the firm’s confidence in its own product and in the potential of bitcoin. This strategic move allows Ark Invest to have greater control over its bitcoin holdings and aligns its financial interests with the success of its own ETF. As the cryptocurrency market continues to evolve, it will be interesting to see how Ark Invest’s decisions impact its portfolio performance and overall success.

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