Cathie Wood’s ARK Invest Sells GBTC, Buys Robinhood

Renowned investor Cathie Wood’s investment management company, ARK Invest, has made some strategic moves in its investment portfolio, selling off additional shares of Grayscale’s GBTC while showing a preference for Robinhood Markets (HOOD) shares over Coinbase (COIN) stock. Let’s break down the key details:

As of November 24, ARK Invest’s fund, ARK Next Generation Internet ETF (ARKW), sold 94,624 Coinbase shares, amounting to approximately $3 million in value. This decision came as the negative premium for the Grayscale Bitcoin Trust (GBTC) decreased to 8.07%.

Reasons Behind the Moves:

ARK Invest’s actions seem to be influenced by the changing dynamics in the cryptocurrency market. While GBTC’s premium decreased, its price still saw a 2.50% increase on November 24, closing the week at $31.21. GBTC has grown significantly, rising by 280% this year and 126% in the last few months, especially since the court ordered the U.S. SEC to consider Grayscale’s application to convert GBTC to a spot Bitcoin ETF.

Notably, ARK Invest showed interest in Robinhood Markets stock. On November 24, the ARK Next Generation Internet ETF acquired 93,297 shares of Robinhood, indicating a strategic move towards this particular stock.

Investment Strategy and Concerns:

ARK Invest’s actions regarding GBTC appear to contradict the bullish sentiments previously expressed by Cathie Wood. ETF trade statistics show that ARK’s exposure to Bitcoin has been steadily declining, with 36,168 shares sold off as of last Wednesday. This trend is in contrast to Wood’s public positions, and it coincides with Bitcoin’s impressive surge in value.

Wood had recommended the Grayscale Bitcoin Trust as her top choice during the recent Sohn Australia conference. However, as of September 30, Cathie Wood Ark Invest held 5.6 million units of GBTC, making it the fourth-largest trust holder, according to ETF provider data compiled by Bloomberg. This apparent discrepancy between investment actions and public statements has raised investor concerns.

This pattern of behavior is reminiscent of Wood’s actions in 2021 when she quietly reduced investments by a substantial 84% while advocating for the purchase of Tesla shares and setting ambitious price targets for ARK. The market is closely observing as Wood’s firm continues to reduce its holdings in the Grayscale Bitcoin Trust, all while expressing public enthusiasm for Bitcoin.