To Diversify Crypto Assets, Ark Invest Buys $15.9 Million Spot Bitcoin ETF

Ark Invest has moved $15.9 million from the Proshares Bitcoin Strategy ETF to its in-house Ark 21shares Spot Bitcoin ETF.

Cathie Wood’s Ark Invest Shifts Millions to In-House Bitcoin ETF  ETC mining

Ark Invest, led by fund manager Cathie Wood, has made several deals around bitcoin exchange-traded products. The firm has sold its holdings in the Proshares Bitcoin Strategy ETF (BITO), a bitcoin futures ETF, and repurposed those funds to bolster its position in its own Ark 21shares Spot Bitcoin ETF (ARKB).

The reorganization involved Cathie Wood’s ARK Next Generation Internet ETF (ARKW) reducing its stake in BITO to increase its investment in the Ark 21shares Spot Bitcoin ETF. The move resulted in ARKB purchasing $15.9 million worth of shares. Following this transaction, ARKB shares closed at $43.51 on Tuesday, down 0.80%.

Prior to the approval of spot bitcoin ETFs in the U.S., ARKW had made futures-based investments in cryptocurrencies. ARKW initially acquired 20,000 shares of the ARK 21shares Active Bitcoin Futures Strategy ETF (ARKA) and 4.32 million shares of BITO. The BITO shares were paid for through the complete liquidation of its holdings in the Grayscale Bitcoin Trust (GBTC). BITO shares were paid for through the complete liquidation of its holdings in the Gray Bitcoin Trust (GBTC). Bloomberg analyst Eric Balchunas interpreted the move as a “temporary parking space,” a strategy often employed by Ark Invest and others in the transition phase of using highly liquid ETFs.Bitmain Miner

In addition to these strategic shifts in the cryptocurrency space, Ark Invest has also been adjusting its broader portfolio. The company has been selling its stake in Coinbase (COIN) to diversify its investments, including Tesla (TSLA). Cathie Wood has solidified her optimistic view on Bitcoin, maintaining a bullish stance and predicting that the price of Bitcoin will reach $1.5 million by 2030.

Do you think Cathie Wood’s Bitcoin price target is roughly correct? Share your thoughts and opinions on this topic in the comments section below.