By George Ward
In the wake of the FTX collapse, asset management firm ARK Invest is cited for having placed a significant buy order for shares in BTC-related companies. Recent figures show that ARK has increased its portfolio by adding COIN (Coinbase’s shares) and GBTC (Grayscale Bitcoin Trust) shares to its investment portfolio.
The ARK investment firm, owned by Cathie Wood, has notably added more coins to its portfolio in Grayscale’s GBTC fund by purchasing 176,945 more shares. Hence, the investment firm’s total stake in the fund now stands at around $1.4 million.
Current on-chain data shows that ARK Invest owns about 6.358 million shares of GBTC, making up approximately 0.4% of the company’s total portfolio.
Grayscale’s GBTC fund facilitates BTC exposure for investors without needing them to own BTC directly. At present, Coinbase manages the underlying Bitcoin for the GBTC fund.
Despite its recent low records of about 45.2%, Grayscale’s GBTC price has been on a steady rise. While much confidence in the crypto market has reduced over the past two weeks, Bitcoin trust has seldom hit new lows.
The FTX fallout Made Cathie Wood Purchasing The Dip
With the FTX contagion still reverberating through the crypto space, ARK’s move to increase its ownership in two companies with their respective struggles seems wise. Buying the dip is the usual target for many institutional investors.
In its latest report, Cathie’s ARK Invest revealed that the company purchased over 176k additional GBTC shares. The purchase is an addition to the 273k shares bought last week, notably a week after the FTX debacle.
Since the FTX crash, Grayscale has been in the news as its parent firm, Digital Currency Group (DCG), fights to get liberated from its massive exposure to the now-defunct crypto exchange.
Meanwhile, ARK’s next target is to own more shares of the cryptocurrency exchange, Coinbase (COIN). The company has notably increased its portfolio in COIN by 1.3 million shares from the beginning of November. Hence, its total stake has risen to 8.374 million, which is almost a new all-time high.
According to its curry newsletter email, ARK mentioned the FTX incident stating that more firms in the same line of business might be next.