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Cathie Wood, the founder of Ark Invest, bought the dip this Tuesday when Bitcoin prices tumbled below $30K. According to reports, Ark acquired more than one million shares of the Grayscale Bitcoin Fund. The company also bought more Coinbase shares. Wood has a positive stance on crypto and keeps predicting Bitcoin will reach a long-term price of $500K.
Ark Invest Purchases One Million Shares
Dips are for buying: that’s the popular saying in bull markets. And Cathie Wood, founder and CEO of Ark Invest did just that. According to reports, Ark took advantage of the price dip to acquire more than one million shares of the Grayscale Bitcoin Fund. These shares were purchased for the ARK Next Generation Internet ETF, a fund that’s based in tech, mobile, and cloud companies. This fund currently holds more than 8 million GBTC shares, totaling almost $240 million invested in Bitcoin only.
Wood is showing she puts her money behind her words. She declared she has a positive stance on Bitcoin, and she believes its price may reach $500K in the not-so-distant future. Wood achieved an almost prophetic status after predicting the rise of Tesla’s stock price. However, she is not only bullish on Bitcoin.
Ark also purchased more Coinbase shares during the dip event. The company managed to add more than 200K Coinbase shares last Tuesday, adding it to its Ark Innovation ETF. Ark now holds 3,631,850 shares of the exchange for a total investment of $821 million.
GBTC Premium Rebounds
Wood seems to have nailed it for now, with bitcoin prices recovering past $30K levels in just two days. Also, the dynamics of the GBTC fund seem to have benefited Ark’s movement as well. While the Grayscale Bitcoin Fund seeks to track the price of bitcoin to bring exposure for institutional investors, there is always an imbalance compared to the actual price.
However, this deficit has closed by 66% since last week, and GBTC shares are now trading at a discount price of just 4% compared to real bitcoin at current market prices. As a consequence, Wood’s investment has gained almost 10% due to this phenomenon.
Wood’s investment in Coinbase has been heavily criticized: the stock has performed poorly since it was launched via a direct listing. But Wood is confident it will pick up. This is not the first time Ark has bought the dip on Coinbase: the company purchased 1.2 million shares last May.