Ark Invest Boosts Stake in ARK 21Shares Bitcoin ETF and Ditches ProShares Bitcoin Strategy ETF
Ark Invest, led by the renowned money manager Cathie Wood, raised its holdings in its own spot Bitcoin BTC/USD exchange-traded fund. The company accumulated a staggering $44 million worth of the ETF units over the course of the week.
What Unfolded: Ark purchased 316,526 units of ARK 21Shares Bitcoin ETF ARKB on Friday, amounting to $13.21 million based on the ETF’s closing price of $41.73. Simultaneously, Ark divested 510,337 units of ProShares Bitcoin Strategy ETF BITO valued at $10.25 million.
The ProShares Bitcoin Strategy ETF seeks to capitalize on the performance of Bitcoin by investing in Bitcoin futures contracts. Conversely, ARK 21Shares Bitcoin ETF is among the 11 spot Bitcoin ETFs recently given the green light by the SEC. Unlike BITO, ARKB directly invests in Bitcoin.
Throughout the holiday-shortened week, Ark executed multiple pair trades, buying ARKB and offloading BITO in three out of the four sessions, accumulating 1,047,648 ARKB units valued at $44.09 million, while shedding 2,026,916 BITO units valued at $41.06 million.
Notably, a pair trade is a market-neutral strategy in which a trader bets on two or more securities diverging or converging in price, effectively hedging against losses in any of the security.
As of Friday, ARKB had $309.66 million worth of Bitcoin in its holdings, representing 100% exposure to the leading cryptocurrency.
Cathie Wood has been an advocate for Bitcoin, expressing expectations for the digital asset to surge to $1.5 million by 2030.
Profit-Motivated Adjustment Amid AMD’s Strength
Ark, through its Ark Next Generation Internet ETF ARKW, parted with 45,052 shares of Advanced Micro Devices, Inc. AMD on Friday, likely yielding the firm $7.85 million.
On the same day, AMD closed at $174.23, surging by 7.11% as per Benzinga Pro data. The stock saw a remarkable 19% increase over the week, following heightened confidence from sell-side analysts, who view the company as best positioned to reap benefits from the second wave of AI.
This week witnessed three analysts upping their price targets for AMD while maintaining their bullish recommendations.