The recent 40% drop in Bitcoin price from highs has sparked interest among institutional investors looking to buy. And as SEC filings recently revealed, Ark Invest purchased an additional $19,872,939 worth of Bitcoin during the market turmoil this past week. Ark’s method of exposure, as expected, is through the Grayscale Bitcoin Trust – accumulating an additional 639,000 shares.
Cathie Wood’s Ark Invest buys the Bitcoin dip, adds $20 million in GBTC
Cathie Wood is one of the biggest advocates of Bitcoin technology and value on Wall Street. Her Ark Invest fund was the first institutional fund to invest through the Grayscale Bitcoin Trust (GBTC) in 2015 when Bitcoin was only worth $200.
In it, the ARK Next Generation ETF (ARKW) reportedly holds around $240 million in GBTC shares, with indirect exposure to the main cryptocurrency through Tesla, Square, and Coinbase, among others. Even now, access to the crypto market remains difficult for institutional investors, with the Securities and Exchange Commission (SEC) delaying the review and approval of ETFs. Bitcoin.
However, Bitcoin’s recent 40% drop from highs has sparked interest among institutional investors looking to buy. Billionaire investors like Carl Icahn and Ray Dalio, former Bitcoin skeptics, are said to be buying the digital asset.
However, for Ark Invest, it was a buy case. SEC filings recently revealed that Ark Invest purchased $19,872,939 worth of Bitcoin during the turbulent market this past week. Ark’s method of exposure, as expected, is through the Grayscale Bitcoin Trust – accumulating an additional 639,000 shares.
Back in March, Wood said that Bitcoin had much more room to grow. When Bitcoin’s market capitalization was still at $1 trillion, the fund manager went on a CBOE panel to say that $ 1 trillion is nothing compared to where Bitcoin ultimately will be. Despite the recent correction and concerns over mining energy consumption, it’s clear that Ark remains ever so bullish on Bitcoin. As the broader crypto market continues to recover, Wood’s investment decision to buy the bottom may pay out just yet.
Source: AZCoin News