On Tuesday, January 16, 2024, ARK Invest bolstered its position in the cryptocurrency market by buying over $15.9 million worth of shares of its newly approved Bitcoin ETF. The ETF issuer bought over 365,427 shares of the ARK 21Shares Bitcoin ETF (ARKB) and added to its Next Generation Internet ETF (ARKW).
This move comes only a few hours after it sold over $15.84 million worth of ProShares Bitcoin Strategy ETF (BITO) shares, about 757,664 units. ARK Invest’s actions showcase its dynamic approach in response to the evolving market conditions following the recent approval of 10 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC).
In a noteworthy move, ARK Invest had previously sold its holdings in the Grayscale Bitcoin Trust (GBTC) in December, anticipating the fund’s transition into a Bitcoin ETF. The company converted its GBTC shares to BITO in anticipation of the SEC’s approval of exchange-traded products.
At the time, Cathie Wood, ARK Invest’s CEO, explained in an interview on Bloomberg TV that the decision to trade was driven by the safety associated with an already approved ETF compared to a conversion awaiting approval. Wood emphasized the absence of regulatory uncertainties related to BITO, indicating the firm’s intention to maintain exposure through BITO for an extended period.
During the Bloomberg TV interview, Wood expressed optimism about Bitcoin and the forthcoming crypto market, underlining her confidence in ARK Invest’s preparations for evolving market conditions, including the complete exit from Grayscale Trust Bitcoin Shares (GBTC).
Wood further projected Bitcoin’s value exceeding $1.5 million by 2030, highlighting the strategic nature of these moves. It’s noteworthy that the Bitcoin ETF issuer is also aiming for $4 billion in assets for its ARK21Shares Bitcoin ETF, as reported in a previous statement.
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