As the bitcoin fell below $30k on Tuesday, Ark used two of its ETFs to stockpile large amounts of COIN and Grayscale Bitcoin Trust (GBTC).
The company spent its worth around $29.3 million to take advantage of the bitcoin downturn. The firm bought 214,718 Coinbase (COIN) shares. That pushed its holding to 4.7 million shares and 1,046,002 shares of the Grayscale Bitcoin Trust, bringing its total holdings of GBTC to roughly 8.5 million shares which are worth just under $239 million.
Ark used its three exchange-traded funds (ETFs) to make this purchase.
Grayscale Bitcoin Trust
Grayscale Bitcoin Trust is the 7th largest holding in the fund, with a weight of 4.09%. Tesla tops the list. Its value is procured exclusively from Bitcoin and consequently reflects that of the digital currency.
On Tuesday, its market value dropped by 13%. Therefore bitcoin fell below $30k, bringing the year-to-date gain down to just 3%. Many buyers stepped in to buy the world’s most prominent digital currency to take advantage of the dip.
Despite The Fall
Despite the recent Bitcoin downfall, Wood remains bullish on her long-term price target of $500,000. Of course, the investor’s astronomical price goal assumes that all institutional asset managers will deploy at least 5% of their portfolios to bitcoin.