Under the stewardship of CEO Cathie Wood, Ark Invest is reportedly scaling down its Bitcoin investments, a move that starkly contrasts Wood’s previously bullish stance on the cryptocurrency. Wood, known for her visionary financial insights, has been a vocal supporter of Bitcoin, predicting its value could soar above $1 million.
Ark’s ETF trading indicates a reduced Bitcoin focus
Despite Wood’s enthusiastic public support for Bitcoin, recent trading data from Ark Invest’s exchange-traded funds (ETFs) reveals a significant reduction in their investment in the Bitcoin Grayscale Trust. Ark ETF has offloaded more than 700,000 shares, signaling a shift away from its previously strong position on Bitcoin.
This isn’t the first time Ark Invest’s investment strategy has diverged from its public endorsements. In 2021, the company reduced its stake in Tesla despite publicly promoting the stock and setting ambitious price targets.
Market reactions and future implications
Ark Invest’s recent divestment of over 200,000 shares in the Grayscale Bitcoin Trust (GBTC) coincided with a 10% surge in the BTC investment vehicle’s value. These sales, part of a broader transaction series, equated to roughly $6 million. Despite this sell-off, GBTC remains a key element of Ark’s Next Generation Internet ETF (ARKW).
GBTC has seen a significant rally in 2023, with its value increasing nearly 250%, outperforming Bitcoin’s 123% rise. A recent legal victory for Grayscale Investments, GBTC’s parent company, against the U.S. Securities and Exchange Commission could transform GBTC into a spot Bitcoin ETF. This development might positively impact the crypto market.
Ark Invest’s latest investment moves, guided by Cathie Wood, present a complex picture for investors and market analysts. While Wood continues to express a bullish outlook on Bitcoin, the firm’s investment maneuvers suggest a more nuanced strategy in navigating the cryptocurrency landscape.