A subscription to Ark Invest’s trade reports revealed that the company took advantage of the Bitcoin downturn on Tuesday by buying up another 214,718 shares of Coinbase (COIN). The purchase pushed its holdings to 4.7 million shares.
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The firm used its Ark Innovation ETF (ARKK) to purchase the shares of COIN. Ark then used its Ark Generation Internet ETF (ARKW) ETF to purchase an additional 1 million shares of the Grayscale Bitcoin Trust (GBTC), worth around $29.3 million.
ARKW, which has the largest GBTC holdings of any ETF on the market, now has 8.5 million shares of the trust. The next highest holding of any ETF is the BLOK data sharing ETF with just 212,328 shares of GBTC.
Ark is taking advantage of a massive drop in the markets. Bitcoin has dropped nearly 50% from its all-time high and so has Grayscale’s Bitcoin trust. Coinbase initially started trading at almost $350 per share. Since its public offering, it has dwindled down to $222, creating a nearly 35% drop from its top.
Ark Invest now manages some of the most heavily weighted crypto ETFs on the market, giving its investors exposure to a variety of crypto-related assets.
ARKW holds shares of Tesla, Square and the Grayscale Bitcoin Trust. ARKK holds shares of Tesla, Square and Coinbase. Investors in either of these ETFs have a relatively high degree of crypto exposure short of owning crypto itself. The ETFs also have an extremely high weighting towards technology companies.
This story is developing.
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