Ark Invest, a leading investment management firm, recently significantly increased its stake in its own Bitcoin ETF, the Ark 21Shares Spot Bitcoin ETF (ARKB), propelling the asset into the top five positions in its Ark Next Generation Internet ETF (ARKW) portfolio. This bold investment strategy highlights Ark Invest's growing confidence in Bitcoin as a major strategic asset in the digital investment universe.
Aggressive build-up of ARKB
According to a trading file recently accessed by CryptoSlate, Ark Invest acquired 267,804 ARKB shares, worth $12.3 million, based on the January 24 closing price of $46.27. At the same time, the firm liquidated 282,975 shares of the ProShares Bitcoin Strategy (BITO), valued at $5.4 million. These moves are part of Ark Invest's recent trend to divest BITO and actively accumulate its Bitcoin-based ETF.
As a result, ARKB is now the fifth largest holding in the ARKW portfolio. The fund currently holds 2.1 million ARKB shares, valued at over $87 million, representing 5.64% of the total portfolio. Importantly, ARKB exceeds holdings in well-known entities such as Tesla, Robinhood and DraftKings, although it is outpaced by crypto-focused companies such as Block and Coinbase.
Ark Invest's strategic reorientation
The strategic reorientation of the funds by the firm led by Cathie Wood is in line with market expectations. Observers expected the firm to turn away from BITO and redirect capital to ARKB in order to improve the fund's asset base. This strategy has propelled the Ark 21Shares Bitcoin ETF to third place among the nine 'newborn' Bitcoin ETFs, behind offerings from BlackRock and Fidelity.
Ark Invest's commitment to its Bitcoin ETF and its strategic positioning within its ARKW portfolio illustrate a significant shift in the perception and adoption of Bitcoin as an investment asset. With over $500 million in assets under management, the Ark 21Shares Bitcoin ETF is shaping up to be a major player in the cryptocurrency investment landscape, marking a new era for institutional investors and Bitcoin aficionados alike.
