COIN shares are recovering in tandem with Bitcoin prices while the discount on GBTC shares continues to shrink, now at 4.83%.
Cathie Wood of Ark Invest took advantage of the latest sell-off to increase the fund’s beta exposure to the cryptocurrency market.
On Wednesday, Bitcoin’s prices crashed under $29,000, and Ether touched $1,700. Today already, BTC is back above $34,000 and ETH over $2,000.
The total cryptocurrency market cap has recovered to almost $1.42 trillion after tumbling to $1.2 trillion yesterday.
Ark Invest, known for outperforming the market, bought 1,046,002 shares of Grayscale Bitcoin Trust (GBTC) on Tuesday for its ARK Next Generation Internet ETF. With this latest purchase, the fund’s total holdings of GBTC now amount to roughly 8.5 million shares.
This fund is focused on companies that are disruptively innovating and also involves the shares of Facebook and Snap along with Tesla and Square, both of which have Bitcoin on their balance sheet. While Tesla is ARKW’s top holding, at 4.09% weight, GBTC is the 7th largest holding in the fund.
GBTC has been trading at a discount to BTC price since late February that went to 22.23% in mid-May. Ever since then, this discount has been shrinking as more and more GBTC shares get unloaded on the market, which will continue into July, now coming at a mere 4.83%, as per Bybt.
Wood also bought 214,718 shares of Coinbase for her ARK Innovation ETF, including the likes of Tesla, Roku, Square, Spotify, and Zillow, and has $23.1 billion in net assets.
ARK now holds roughly 3.6 million shares of Coinbase.
Moving in line with Bitcoin prices, COIN shares slipped to $210 on Wednesday and are currently above $227, but way off its all-time high of nearly $430 made on the day of its debut.