Ark Invest bought bitcoin by spending around $20 million.
ARK Invest has purchased $19,872,939 worth of #bitcoin – AronBoss
— Bitcoin Magazine (@BitcoinMagazine) May 24, 2021
To be precise, the amount invested was $19,872,939, or about 523 BTC, and the purchase was reportedly declared to the SEC directly by the company itself.
The purchase was reportedly made by the ARK Cryptocurrency US Fund, thanks to $20 million raised by 12 investors. The fund requires a minimum investment of $1 million.
However, the average purchase price is not known, nor is the timeframe, although it is conceivable that these purchases have occurred recently, perhaps during the recent price drop.
Ark Invest’s strategy on Bitcoin
Although this is not a direct investment by the company, but a purchase by a fund set up and managed by Ark Invest, it is nevertheless perfectly in line with the company’s strategy to take positions on these assets.
For example, the company had recently stated that it had invested in Ethereum, and before that in Coinbase, so it is clearly looking for exposure to these assets.
In addition, founder Cathie Wood has been bullish on bitcoin for some time, so it is hardly surprising that they have decided to gain exposure to BTC as well. In fact, she recently stated that the price of bitcoin is likely to rise after the recent bitcoin price crash of about 50%.
Ark Invest is also reported to own several shares of Grayscale Bitcoin Trust, which it purchased some time ago, and has recently increased its ownership of Coinbase shares as well.
In the absence of ETFs in the US market that can easily and traditionally allow for a position on the price of bitcoin, funds like Grayscale or the ARK Cryptocurrency US Fund can be good substitutes. So it’s no surprise that they are proving to be very successful.
In fact, these are funds that buy cryptocurrencies on behalf of their shareholders, with the share price reflecting the price of the underlying asset, as they are exclusively investment vehicles that only own cryptocurrencies.
Ark Invest is clearly interested in this market and is keen to enter it.
