ARK Invest's Latest Maneuver Reveals Strategic Play Of Boosting ARKB Holdings While Shedding BITO

Cathie Wood's ARK Invest demonstrated its commitment to its strategic investment strategy by actively acquiring shares of its Ark 21Shares Spot Bitcoin ETF (ARKB). The company intends to incorporate these shares into its actively managed exchange-traded fund (ETF), the Next Generation Internet ETF (ARKW).

ARK Invest acquired a total of 523,541 ARKB shares at a value of $21 million while shedding off 648,091 shares of the ProShares Bitcoin Strategy ETF (BITO), generating proceeds amounting to $12.85 million from this divestment.

On Tuesday, ARK Invest Daily, the official X account not associated with the firm but provides daily updates for Wood's Ark Invest fund, reported that ARK Next Generation Internet ETF, purchased 360,380 ARKB shares and dumped 585,915 BITO shares, reflecting the company's approach in boosting its ARKB shares.

The latest investments made by ARK Invest followed its last week's acquisition of ARKB shares, when it sold a total of 757,664 BITO shares, with an approximate market value of $15.8 million and used the proceeds to acquire 365,427 shares of the Ark 21Shares Bitcoin ETF (ARKB), an equivalent investment of $15.8 million.

Last month, ARK Invest sold off its entire Grayscale Bitcoin Trust (GBTC), a move, analysts believed, was made to support the launch of its Ark 21Shares Bitcoin exchange-traded fund (ETF).

Half of the proceeds from the GBTC sale, approximately worth $100 million, were used to purchase the BITO Bitcoin Futures ETF, making ARK Invest the second-biggest holder of BITO.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence made a noteworthy forecast regarding the investment strategy of ARK Invest last month.

According to him, ARK Invest was anticipated to divest its holdings in the Grayscale Bitcoin Trust (GBTC) and subsequently redeploy these funds into ARKB, aiming to fortify the asset base of the latter.

The analysts emphasized the pivotal role that asset flows and trading volumes play in the promotion and market performance of Exchange-Traded Funds (ETFs), underscoring their significance in the context of these investment decisions.

Among the recently approved Bitcoin Exchange-Traded Funds (ETFs) in the United States, ARKB has established itself as a standout performer.

Bloomberg Intelligence data reveals that ARKB achieved a remarkable total trading volume of $1.070 billion in a mere eight days of trading, accompanied by substantial total inflows of $509 million.

As of the latest available information, ARKB manages assets totaling $409 million (AUM), underscoring its growing appeal among investors.

Notably, on its eighth day of trading, the fund experienced a notable inflow of $110.5 million, further solidifying its position as an attractive investment vehicle in the Bitcoin ETF landscape.