The asset manager ARK Invest boosted its holdings in the Grayscale Bitcoin Trust in the fourth quarter of 2020, according to a recent filing with the Securities and Exchange Commission.
Cathie Wood’s ARK, which manages assets of about $50 billion, bought 2.14 million additional shares in Grayscale’s digital-currency investment product, bringing its total holdings to 7.31 million shares.
Grayscale Bitcoin Trust, the world’s largest bitcoin fund and the first of its kind, enables investors to speculate on and gain exposure to bitcoin in the form of a security without having to buy or store the digital token directly. Shares in the investment vehicle are part of a range of traditional finance products that track bitcoin prices.
As of Tuesday, ARK’s new share position in the Grayscale product was about $351 million. The firm’s Next Generation Internet ETF holds shares in the trust.
The price of bitcoin rose to $49,998 on Tuesday before slipping back. Interest from Wall Street institutions added momentum to its rally.
Wood predicted earlier this month that bitcoin would shoot higher this year. “Bitcoin is only [at] roughly a $600 billion market cap,” she told Yahoo Finance. “So even half the size of Apple or Amazon, right now. Doesn’t that put it into perspective? And yet, it is a very big idea, I think. A much bigger idea than Apple or Amazon.”
ARK has five exchange-traded funds run by Wood and her team of analysts that actively invest in companies they believe will change the world through “disruptive innovation.”
Other companies that Ark invested in during the fourth quarter were Tesla, Square, Roku, Pinterest, DocuSign, Alibaba, Snapchat, PayPal, and Netflix.