At the end of last year, ARK purchased over 4 million BITO shares as a short-term investment, anticipating the approval of spot Bitcoin ETFs in the United States and planning to sell them once authorization is obtained.
However, after a series of consistent sales in January, ARK sold its last BITO shares last week. Let’s see all the details below.
Summary
ARK divests from BITO shares
As anticipated, on Thursday, ARK Invest, led by Cathie Wood, sold its last shares of the ProShares Bitcoin Strategy ETF (BITO).
The company has sold 237,983 BITO shares, obtaining 6.7 million dollars at Thursday’s closing price of 28.22 dollars each, through its Next Generation Internet ETF (ARKW).
At the end of last year, ARK had purchased over 4 million shares as a short-term investment, anticipating the approval of spot ETFs on Bitcoin in the United States and planning to trade them once authorization was received.
After constant sales in January, ARK sold the remaining BITO shares last week.
Meanwhile, the ARK 21Shares Bitcoin ETF (ARKB) has become the largest holding of the fund, with 2,480,644 shares worth $160.6 million, calculated at Thursday’s closing price of $64.76. This represents 10.4% of the total value of the fund.
ARK Invest’s purchase of massive Tesla shares
Ark Invest by Cathie Wood made a significant acquisition of Tesla (TSLA) shares during a market downturn.
On Monday, the company purchased 122,752 Tesla shares worth approximately $18.05 million, dividing the purchase among three of its main funds: ARKK, ARKQ, and ARKW.
This operation underlines ARK Invest’s confidence in Tesla’s future growth and is part of its long-term investment strategy.
The news comes as Tesla faces a period of financial difficulties. The company reported a 9% drop in sales in the first quarter of 2024, the highest since 2012, partly due to ongoing price reductions.
Furthermore, the net profit has decreased by 55%, from 2.51 billion dollars in 2023 to 1.13 billion dollars in 2024. Tesla has also forecasted a slowdown in the growth rate for 2024, which has raised further concerns among investors.
Despite these difficulties, Ark Invest continues to show confidence in Tesla, strengthening its position with a massive purchase of shares.
This can be seen as a positive signal for Tesla’s future, even though the market remains cautious due to recent fluctuations.
The increase in positions in Bitcoin and Ethereum before the halving
In anticipation of the Bitcoin (BTC) halving, ARK Invest had made a series of transactions that show its confidence in the future of the cryptocurrency.
Among the most significant moves, ARK added 139,152 units of its Bitcoin spot ETF, the ARK 21Shares Bitcoin ETF, worth 8.96 million dollars. This follows a previous purchase of ETFs for 31.19 million dollars the day before.
ARK Invest has not limited itself to Bitcoin. It has also diversified its portfolio by purchasing 41,068 shares of the ProShares Ether Strategy ETF (EETH), worth approximately 2.78 million dollars.
This acquisition adds to another purchase of 2.9 million dollars in EETH shares that took place on April 18th.
Analysts have considered these transactions significant, especially because they occurred just a few hours before the anticipated Bitcoin halving event.
Cathie Wood has confirmed her confidence in the long-term potential of Bitcoin, despite the volatility of the cryptocurrency market following the halving.
In a recent interview, he spoke about his positive vision for transformative technologies, including artificial intelligence, electric vehicles, and the cryptocurrency sector.
Furthermore, ARK Invest has expanded its global presence with the launch of its first three European UCITS ETFs, responding to the growing demand for its investment strategies.
This expansion reflects ARK Invest’s vision of embracing new opportunities in global markets.
