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Remarkable Development in the Cryptocurrency Industry: Investment Decision from ARK Invest!
Led by Cathie Wood, Ark Invest's change in its cryptocurrency investment strategy has been one of the latest developments in the industry.
Ark Invest recently signaled a recalibration of its investments by divesting 510,337 shares in the ProShares Bitcoin Strategy ETF. Moreover, this kind of big move has come before.
A significant portion of ProShares Bitcoin Strategy ETF (BITO) assets have been diverted to the firm's spot Bitcoin ETF. Trading data on Jan. 18 revealed that the ARK Next Generation Internet ETF (ARKW) conducted transactions involving 758,915 BITO shares worth $15 million. Simultaneously, the firm bought 365,695 shares of its proprietary bitcoin ETF ARKB for the same amount.
Cathie Wood's Ark Invest implemented a well-thought-out strategy by strategically reducing BITO stake through ARKW while strengthening its investments in the Ark 21shares Spot Bitcoin ETF (ARKB). This strategic maneuver resulted in an inflow of $15.9 million into ARKB, with shares closing at $43.51, a modest 0.80% decline on Tuesday.
The market also responded to Ark Invest's tactical moves. On Friday, the ProShares Bitcoin Strategy ETF (BITO) closed at $20.09, up 1.88%. However, a weekly decline of 9.26% was recorded in the price of BITO, which was attributed to the exit from the spot Bitcoin ETF and the strategic sale of ARKW.
Cathie Wood's Ark Invest describes the shift as part of a broader portfolio rebalancing initiative. This move amounts to a deliberate reshuffling of stocks in the portfolio to focus more on the Bitcoin ETF offering.
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