The Ark Invest management, headed by the formidable Cathie Wood, made significant moves this week, investing a staggering $44 million into its own spot Bitcoin exchange-traded fund while divesting shares in another high-profile tech company.
Forefront of Transactions: The investment firm purchased 316,526 units of the ARK 21Shares Bitcoin ETF on Friday, totaling $13.21 million at the ETF’s closing price of $41.73. Simultaneously, it off-loaded 510,337 units of the ProShares Bitcoin Strategy ETF valued at $10.25 million.
BITO seeks to generate returns corresponding to the performance of Bitcoin by investing in Bitcoin futures contracts. On the other hand, ARKB is among the 11 spot Bitcoin ETFs the SEC approved recently. Unlike BITO, ARKB invests directly in Bitcoin.
Throughout the holiday-shortened week, the Wood-led company executed multiple pair trades, where it acquired AKRB and disposed of BITO in three out of the four sessions.
In total, Ark purchased 1,047,648 ARKB units this week, with a cumulative value of $44.09 billion. Meanwhile, it sold 2,026,916 units of BITO on a $41.06 million valuation.
Market Strategy: A pair trade is a market-neutral strategy where a trader bets two or more securities will diverge or converge in price. It involves shorting one security while going long on another to hedge against potential losses.
As of Friday, ARKB had $309.66 million worth of Bitcoin in its holding, constituting 100% of the premier cryptocurrency.
Wood, renowned for her bullish stance on Bitcoin, predicts the cryptocurrency will soar to $1.5 million by 2030.
Amidst Technological Strength: Ark, via its Ark Next Generation Internet ETF, divested 45,052 shares of Advanced Micro Devices, Inc. on Friday, potentially raking in $7.85 million from the sale.
AMD concluded Friday’s trading session at $174.23, marking a 7.11% climb, based on data from Benzinga Pro. The stock surged by nearly 19% for the week after analysts expressed confidence in its capability to benefit from the evolving landscape of artificial intelligence.
Three analysts elevated their price projections for AMD this week while affirming their optimistic outlook for the company.
Further Reading: Elon Musk’s Reaction to Cathie Wood’s Bitcoin Insights
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