Cathie Wood’s ARKW Holdings is Bullish on Coinbase But Hawkish on Grayscale’s GBTC

Cathie Wood’s ARKW Next Generation Internet ETF has made a series of purchases on Coinbase Global Inc. shares in the past two months and kept a hold position on Grayscale Bitcoin Trust (GBTC). According to daily updates from cathiesark.com, ARKW Holdings has added more than 112k Coinbase shares since November 9, 2022.

The latest Coinbase share purchase happened on January 5, 2023, amounting to 27.83K shares. However, ARKW Holdings had offloaded over 174k Coinbase shares on July 26, a time when Bitcoin was at its lowest, around $15.5k

On the other hand, ARKW Holdings purchased GBTC shares twice in 2022 in mid-November. Notably, ARKW purchased a total of 450K GBTC shares in November last year, with the previous one on July 20, 2021.

According to Cathie Wood, her investment company is closely monitoring the FTX implosion that has overflowed to DCG through Genesis Trading. Digital Currency Group is the parent company of Grayscale, Genesis Trading, and Coindesk, among others.

Particularly, the United States Securities and Exchange Commission (SEC) filed charges against Genesis Global Capital LLC and Gemini Trust Company LLC for offering and selling unregistered securities to retail investors through Gemini’s Earn product.

“This crisis raises a few vexing questions. Instead of Coinbase’s unlaunched Lend, why didn’t the SEC target Earn, the product that Gemini already had launched, which could have protected 340,000 investors from as much as $900 million in losses? Perhaps more importantly, why didn’t its legal counsel recommend that Gemini unwind Earn in response to Coinbase’s Wells Notice on Lend?,” Ark Invest noted in a recent post.

Notably, Grayscales GBTC is exchanging at 40 per cent below the Bitcoin value according to data provided by ycharts. According to our latest crypto price oracles, Bitcoin is exchanging around $23k on Monday.