Cathie Wood’s Ark Invest Quietly Dumps Bitcoin Holdings Despite Public Bullish Stance
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In a recent development that has raised eyebrows in the cryptocurrency community, Cathie Wood, CEO of Ark Invest, appears to be reducing her firm’s Bitcoin exposure despite her public stance that remains overtly bullish on the cryptocurrency.
Cathie Wood has been a vocal advocate for Bitcoin, projecting an ambitious price target of over $1,480,000. Her optimistic predictions have been a constant in the crypto news cycle, influencing investor sentiments significantly. However, recent ETF trading data tells a different story, revealing that Ark ETF has offloaded over 700,000 shares of the Bitcoin Grayscale Trust. Contrary to her public bullish outlook, this move indicates a significant decrease in Ark’s Bitcoin exposure.
JUST IN: Ark Invest CEO Cathie Wood’s Quietly Decreasing #Bitcoin Exposure, while Publicly Touting Bullish Outlook.
Just last week, Cathie Woods made headlines for peddling unrealistic BTC predictions, claiming it would surge over $1,480,000+
Contrary to her public “bullish”…
— WhaleWire (@WhaleWire) November 24, 2023
A Pattern of Contrasting Behaviors
This isn’t the first time Cathie Wood’s actions have diverged from her public statements. A similar pattern was observed in 2021 when Ark Invest encouraged investments in Tesla shares, setting an aggressive price target of $3,000 while reducing their company positions by 84%. Such contrasting behaviors between public endorsements and private investment strategies raise questions about aligning Ark Invest’s public statements with its investment strategies.
Further compounding the matter is that on 10 November 2023, Ark Invest sold over 200,000 shares in Grayscale Bitcoin Trust (GBTC) when the BTC investment vehicle experienced a 10% rally. These sales, totaling approximately $6 million, were part of a series of smaller transactions earlier in the week. Despite these sales, GBTC remains significant in Ark’s Next Generation Internet ETF (ARKW).
Legal Victories and SEC Discussions
The sales occurred in a favorable backdrop for GBTC, which has seen a near 250% rally in 2023, outpacing Bitcoin’s own impressive 123% rise. Grayscale Investments, the parent company of GBTC, recently won a legal victory against the U.S. Securities and Exchange Commission over rejecting its application to convert GBTC into a spot bitcoin ETF. Discussions with the SEC have since resumed, potentially paving the way for a spot ETF in the U.S., a bullish indicator for the broader cryptocurrency market.
For investors and market watchers, this development poses critical questions. While Cathie Wood’s bullish predictions for Bitcoin continue to make headlines, the contrasting investment actions of Ark Invest suggest a more complex strategy at play. Investors may need to navigate this landscape with a nuanced understanding of the possible strategic plays and consider the broader market implications of such high-profile investment shifts.
Filed under: Bitcoin - @ November 24, 2023 6:25 am