The Grayscale Bitcoin Trust (GBTC) has been in the portfolio of investors despite the decline in Bitcoin and trust value over the past few months. However, the big crypto whale is amassing huge amounts in two cryptocurrencies. ARK Investment has invested heavily in GBTC amid worsening geopolitical and crypto market conditions.
The company trusts the leading cryptocurrencies BTC and GBTC
Grayscale Bitcoin Trust fell after the sharp decline in Bitcoin price. It was trading at a historic 41.69 percent decline in net asset value (NAV) last week. Still, ARK bought GBTC for about $2.8 million on the day on November 14. It is stated that this amount is around 315,000 shares.
These shares will be added to ARK’s Next Generation Internet (ARKW) exchange-traded fund (ETF), which is currently trading on the decline of NAV. Interestingly, the downturn in GBTC is currently hovering around 39.79 percent. However, this is a significant improvement over the previous week.
The acquisition of ARK Investment, owned by Cathie Wood, comes after the company was reported to have increased its stake in Coinbase. With 7.7 million shares in Coinbase’s native altcoin COIN, ARK has added another 420,949 shares. As a result, he owned a total of 8.12 million shares. The cumulative value of ARK’s COIN assets is currently $403 million.
Is Cathie Wood’s company shaping the market?
The Florida-based fund’s total Assets Under Management (AUM) fell significantly from its peak of $50 billion in February 2021 before the crypto market crash. However, AUM stands at around $14.1 billion.
The move by ARK was thought to give the Coinbase CEO the notion that they had no material exposure to FTX, FTT or Alameda. The transactions were assumed to be for the purpose of creating assurance. However, looking at the GBTC backlog, it is said that Cathie Wood’s company is not just investing. Instead, the idea prevails that the company is speculating that it is ‘building the market’.
Has Bitcoin price found its bottom?
Cathie Wood’s move evokes billionaire investor Warren Buffet’s approach to “don’t invest when the markets are bad”. With all this, many analysts think that the bottom for cryptocurrencies has not yet come. Most analysts expect further declines. If crypto analysts’ thoughts come true, further declines in ARK are likely before the market rises.
The liquidity crisis and collapse in FTX has moved the markets for the better for macro investors. As we have reported as Kriptokoin.com; However, analysts believe that although the bottom is near, it is not yet here. Bitcoin has recovered from its November 8 low of $15,600. Currently, it continues to trade at $ 16,713. That said, the $11,900-$13,500 range for BTC earlier is likely to represent a low of a macro base from a technical perspective.
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