ARK Invest: Cathie Wood buys the bitcoin dip with Grayscale

Cathie Wood’s ARK Invest has bought $13 million worth of Grayscale shares and $43 million worth of Coinbase shares in the last two days alone.

Bitcoin’s recent slide below the $30,000 mark didn’t faze Cathie Wood’s ARK Invest. That’s because ARK bought more than 140,000 additional shares of Grayscale Bitcoin Trust (GBTC) in one day for its ARK Next Generation Internet ETF. This is according to the firm’s daily trading records.

The ARK Next Generation Internet ETF (which trades on the NYSE under the ticker ARKW) focuses on companies that have pioneered innovations in the Internet space. As such, the fund includes companies like Elon Musk’s e-car maker; Tesla, the second company of Twitter CEO Jack Dorsey; Square; Mark Zuckerberg’s Facebook; and Snap, the company behind the app Snapchat. The fund’s net assets currently stand at $6.6 billion.

Just a day earlier, ARKW ETF acquired 310,067 shares of GBTC. When added up, that makes 450,224 GBTC. Since one share is worth 0.000939715 BTC, according to Grayscale’s website, that means ARK Invest bought the equivalent of more than 420 bitcoins in just two days. In U.S. dollars, this amount is equivalent to over 13 million, as the BTC price has recovered to over $32,000 today.

ARK Invest also bought Coinbase shares in a big way

But that’s not all. Even since Coinbase ‘s IPO in April, ARK Invest has stepped in with large investments several times. So too this time. ARK Invest bought 48,977 Coinbase shares on Monday for its ARK Next Generation Internet ETF and 22,900 shares for its ARK Innovation ETF. The latter bought another 120,069 Coinbase shares on Tuesday, and 18,735 more went to the ARK Fintech Innovation ETF. The latter, as its name suggests, deals primarily with emerging FinTech stocks. Its largest holdings include Square, Zillow, Pinterest, PayPal and Alibaba. The fund’s net assets currently stand at $4.2 billion.

In total, all of these stock purchases equal $47 million. The early days in the trading of Coinbase stock were quite volatile. However, things have since stabilized. However, the great flight to the heights expected by some has so far failed to materialize; at the time of writing, the stock is trading at around 230 US dollars. By comparison, the initial price in mid-April was around 100 US dollars higher at 328 US dollars.

The Coinbase test and experience report can be found here.