Cathie Wood's Ark Invest Boosts Portfolio With 1% Of Its Own Bitcoin Spot ETF

After her optimistic opinion on Bitcoin BTC/USD prices, Cathie Wood announced that ARK 21 Shares Bitcoin ETF ARKB represents 1% of the ARK Next Generation Internet ETF ARKW fund.

What Happened: While competition heats up in the spot Bitcoin ETF space, Wood’s Ark Investment Management is accumulating its just-approved and launched Spot Bitcoin ETF. The fund purchased 365,427 shares of ARKB representing 1% of the ARKW fund, as reported by Bloomberg.

The step comes amid the ARK Next Generation Internet ETF offloading $16 million worth of its position in the futures-backed ProShares Bitcoin ETF BITO on Tuesday.

A quick look at Ark Invest's trade activity from Jan.16 is here.

Bloomberg Intelligence ETF analyst James Seyffart said, “Cathie Wood buying ARKB with her other ETFs is a little bit of a cheat code in raising assets and volume, but she’s not the only issuer that can do this and this isn’t the only cheat code available.”

Why It Matters: Last week, Wood revealed that her personal portfolio has a significant portion invested in Bitcoin. Excluding Ark and real estate, BTC accounts for at least 25% of her net worth.

Bloomberg Senior ETF Analyst Eric Balchunas stated that the total volume for spot Bitcoin ETFs in three days stands at $9.68 billion, compared to $450 million of volume reported by the 500 ETFs launched in 2023.

With regards to the total fund inflows for two days, iShares Bitcoin Trust IBIT reported the highest with $497.7 million while ARKB stands in the fourth position with $105.16 million. The Grayscale Bitcoin Trust GBTC has witnessed an outflow of $579.14 million.  

Wood has previously taken similar steps of owning her own product, as seen when Ark Funds' 3D Printing ETF PRNT was included in the Ark Space Exploration and Innovation ETF.

Read Next: Cathie Wood Piles Into Tesla Stock For Second Straight Day After 2024's 12% Slide; Week's Purchases Total $50M

Photo: Ark Invest and Shutterstock