Ark Invest Ditches BITO, Pumps ARKB in Strategic Crypto Portfolio Rebalance

In a noteworthy development, Ark Invest, under the guidance of Cathie Wood, has undertaken a shift in its cryptocurrency investment strategy, drawing attention within the industry.

Ark Invest recently divested a substantial 510,337 shares in the ProShares Bitcoin Strategy ETF, signaling a broader recalibration in their investment approach. And it’s not the first time they’ve made big moves like this. Read on for more about this recent update.

Asset Relocation Strategy

A significant portion of the ProShares Bitcoin Strategy ETF (BITO) holdings has been redirected towards the firm’s spot Bitcoin ETF. On January 18, trading data revealed that ARK Next Generation Internet ETF (ARKW) executed trades involving 758,915 BITO shares, valued at $15 million. Simultaneously, the firm acquired 365,695 shares of its proprietary bitcoin ETF, ARKB, for the same amount.

Cathie Wood’s Ark Invest has executed a well-thought-out strategy, strategically reducing its BITO stake through ARKW while reinforcing investments in the Ark 21shares Spot Bitcoin ETF (ARKB). This strategic maneuver resulted in a $15.9 million infusion into ARKB, with shares closing at $43.51 on Tuesday, marking a modest 0.80% decrease.

Market Impact

The market responded to Ark Invest’s tactical moves. On Friday, ProShares Bitcoin Strategy ETF (BITO) observed a 1.88% increase, closing at $20.09. However, a 9.26% weekly decline in BITO’s price was noted, attributed to the outflow from the spot Bitcoin ETF and strategic selling by ARKW.

…But Why?

Cathie Wood’s Ark Invest characterizes this shift as part of a broader portfolio rebalancing initiative. The move signifies a deliberate reshuffling of shares within the portfolio, for a heightened focus on the Bitcoin ETF offering.

Read More: Will Bitcoin ETF Crash The Market Again? Here’s What Next For BTC Price