Cathie Wood’s investment management firm ARK Invest is buying up more shares of the Grayscale Bitcoin Trust (GBTC) for the first time in over a year. According to public data from ARK, the firm purchased 273,327 shares of the Bitcoin (BTC)-based investment product on November 15. ARK made a second purchase on Monday of 176,945 […]
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ARK Invest scoops up bargains as Coinbase shares hit all-time lows and GBTC trades at a near-50% discount to the already suppressed Bitcoin spot price.
Bitcoin (BTC) firms’ shares are a major “buy” for asset manager ARK Invest in the midst of the FTX meltdown.
The latest data confirms that ARK continues to up its holdings of both exchange Coinbase (COIN) and the Grayscale Bitcoin Trust (GBTC).
With FTX contagion still rippling through the crypto industry, ARK’s decision to add exposure to two firms caught in the firing line stands out.
According to numbers supplied by CEO Cathie Wood’s dedicated tracking resource, Cathie’s Ark, the firm added 176,945 GBTC shares on Nov. 21.
These join a larger tranche of 273,327 shares from Nov. 15, that purchase completed just a week after FTX fell apart.
Since then, GBTC has come under the spotlight as parent company Digital Currency Group (DCG) battles FTX problems of its own.
Coinbase is meanwhile another target for ARK. Since the start of November, the firm has added 1.3 million COIN shares, taking its total stake to 8.374 million — near all-time highs.
COIN shares now account for ARK’s 12th-largest position.
Commenting on the FTX debacle in its latest newsletter, ARK acknowledged the potential implications for DCG company Genesis Trading, and warned that other “counterparty” entities may be next.
“That said, our conviction in decentralized and transparent public blockchains is as strong as ever,” it nonetheless added.
“In this case and others, decentralization and transparency are paramount as antidotes to the gross mismanagement associated with centralized intermediaries, not to mention fraudulent centralized intermediaries.”
Bitcoin price action meanwhile continues to decline, two weeks after problems at FTX spiraled out of control.
Related: Bitcoin price levels to watch as traders bet on sub-$14K BTC
BTC/USD hit fresh two-year lows on Nov. 21, data from Cointelegraph Markets Pro and TradingView shows.
The pair dipped to $15,479 on Bitstamp after the Wall Street open, recovering only slightly to circle $15,750 at the time of writing.
COIN itself hit a record low at the same time, while equally embattled GBTC retained the majority of its discount at over 40% versus the Bitcoin spot price despite ARK's buy-in.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
The CEO of investment management firm Ark Invest has warned that if the Federal Reserve does not pivot, the current economic setup will be similar to 1929 when the Great Depression started. Tesla CEO and Twitter chief Elon Musk agreed. The Fed, Inflation, and the Great Depression Ark Invest CEO Cathie Wood, who is also […]
A rare 2% daily loss for the U.S. dollar index gives Bitcoin and stocks an opportunity for gains, but BTC still undercuts the rest on volatility.
Bitcoin (BTC) held gains above $21,000 into Nov. 5 as the U.S. dollar posted a rare major daily decline.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD building on prior strength to hit highs of $21,473 on Bitstamp — a new seven-week high.
The pair had benefited from the latest United States economic data, while the dollar conversely suffered. The U.S. dollar index (DXY) lost 2% in a day for the first time in years, helping fuel a risk asset rally.
“And, just like that, Bitcoin took out all the highs, volume is increasing and it's back above $21K,” Michaël van de Poppe, CEO and founder of trading firm Eight, commented.
“I'm assuming we'll continue towards $22.5K from here, but have a slight correction before continuing (as we took out all the liquidity). Buy the dip season.”
BTC had previously become notorious for its lack of volatility and narrow trading range, helping it beat even stocks for the first time ever.
“For the first time in history, bitcoin is less volatile than both the S&P 500 and Nasdaq,” Yassine Elmandjra, a crypto analyst at ARK Invest, noted, linking to the firm’s latest report, “The Bitcoin Monthly.”
“The last time volatility was this low, bitcoin rose from $9,000 to $60,000 in less than a year.”
Tyler Winklevoss, co-founder of trading platform Gemini, meanwhile revealed a belief that crypto markets would continue to act as a leading indicator of overall market trajectory, as in 2021.
“Crypto was the first asset class to crash; it will be the first to rise again,” he summarized.
Continuing on the theme of low volatility, ARK’s report, led by well-known analyst David Puell, showed that it was not just stocks being undercut by Bitcoin’s stability.
Related: Why is the crypto market up today?
“Bitcoin’s relative volatility has not only decreased relative to equities, but also to major currency pairs. As macro uncertainty and USD strength have increased, foreign currency pairs have been impacted negatively while bitcoin has been relatively stable,” The Bitcoin Monthly stated.
“Bitcoin’s 30-day realized volatility is nearly equivalent to that of the GBP and EUR for the first time since October 2016. Although Fed hawkishness could continue its volatility, bitcoin’s strength relative to foreign currencies is an encouraging sign.”
As Cointelegraph reported, another popular analyst, LookIntoBitcoin creator Philip Swift, has forecast the end of the current bear market by the start of 2023.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Veteran hedge fund manager and ARK invest founder Cathie Wood is calling out the US Federal Reserve in a new open letter. In a post on ARK’s website, Wood says the Fed seems to be basing its decisions based on two variables: employment and headline inflation. The ARK founder views both as lagging indicators, and questions […]
The post ARK Invest’s Cathie Wood Pens Open Letter Claiming Fed Is Making Policy Error in Hiking Interest Rates appeared first on The Daily Hodl.
Tesla CEO Elon Musk has warned that a major rate hike by the Federal Reserve risks deflation in the U.S. economy. Musk’s warning followed an analysis by Ark Invest CEO Cathie Wood, who cautioned that “Leading inflation indicators like gold and copper are flagging the risk of deflation.” Elon Musk, Fed Rate Hikes, and Deflation […]
An analyst at investment management firm ARK Invest says Ethereum (ETH) could start gathering more bullish momentum as the crypto markets pivot back to a risk-on environment. In a new interview on the For Your Innovation podcast, ARK analyst Frank Downing says that the dust is settling in the crypto markets after months of bearish […]
The post ARK Invest Unveils Bullish Ethereum (ETH) Outlook, Says Crypto Markets Moving Back to Risk-On Environment appeared first on The Daily Hodl.
Veteran hedge fund manager Cathie Wood is revealing why her firm, ARK Invest, sold shares of US-based crypto exchange Coinbase last month. An update on a website tracking the holdings of ARKW, ARK Invest’s innovation-focused fund, reveals that the investment firm offloaded approximately 174,611 shares of Coinbase (NASDAQ: COIN) on July 26th. In a recent interview […]
The post Cathie Wood Explains Why ARK Invest Sold off Its Coinbase Shares Last Month appeared first on The Daily Hodl.
ARK Invest founder Cathie Wood thinks BlackRock’s entry into the crypto space could have huge implications for the price of Bitcoin (BTC). Last week, US-based crypto giant Coinbase announced that it teamed up with BlackRock, the biggest asset manager in the world, to bring cryptocurrency trading to wealthy clients. Wood explains in a new YouTube video […]
The post Cathie Wood of ARK Invest Says BlackRock’s Entrance to Crypto Could More Than Double Price of Bitcoin appeared first on The Daily Hodl.
Veteran hedge fund manager Cathie Wood’s ARK Invest is cutting its stake in the shares of Coinbase crypto exchange. An update on a website tracking the holdings of ARKW, ARK Invest’s innovation-focused fund, reveals that the investment firm offloaded approximately 174,611 shares of Coinbase on July 26th. ARKW is an exchange-traded fund (ETF) focused on […]
The post Cathie Wood’s Ark Invest Sells 174,611 Coinbase Shares Amid 85% Wipeout in the Crypto Exchange’s Stock Price appeared first on The Daily Hodl.
