• Ark Invest sold 500k shares of GBTC in the past month, despite the price of the crypto recovering from its lows.
• GBTC is currently trading at $12.25, down from the $7.46-$9.48 range it was in back in November 2022.
• Ark Invest has also been accumulating shares in Coinbase (COIN) and the Coinbase stock weight in the Ark Investment portfolio has increased to 3.4%.
Cathie Wood’s Ark Invest has been making waves in the cryptocurrency space with their recent decisions. In November 2022, Ark Invest bought shares in Grayscale Bitcoin Trust (GBTC) despite the lack of transparency on Grayscale’s part. This decision was part of the firm’s ARK Next Generation Internet ETF (ARKW). Since then, the price of bitcoin and GBTC have seen a significant recovery, with GBTC reaching a price of $12.25.
However, Ark Invest has decided to reduce its holdings in GBTC by 500,000 shares. According to reports, this decision was made in line with the firm’s ‘bearish view’ on GBTC, due to the filing of Genesis Global for bankruptcy claiming $1 billion to $10 billion in liabilities to creditors. Consequently, the GBTC discount has been reduced from 50% to 40%.
The sale of GBTC shares has been concurrent with an accumulation of Coinbase (COIN) shares. ARKW also added 320,000 shares worth $17.6 million in 2023. Following this boost, the Coinbase stock weight in the Ark Investment portfolio has increased to 3.4%.
Unfortunately, due to rejections from the SEC, Grayscale has yet to convert its bitcoin trust into an ETF. Moreover, if the SEC approves the conversion, GBTC’s discount could be reset to zero. It will be interesting to see how Ark Invest’s decisions in the crypto space play out in the coming months.
• Over 50% of Genesis portfolio is ETH.
• Out of the over $414m of Genesis portfolio assets, 74% are Ethereum (ETH) and ERC-20 tokens.
• There are decent chunks of COMP, the native token of Compound; Sand of The Sandbox metaverse project; and APE, the native coin of ApeCoin, an NFT project associated with Bored Ape Yacht Club (BAYC).
The Genesis portfolio has seen an impressive recovery in the cryptocurrency markets this January. On-chain data from Jan. 23 shows that the over $414m of Genesis portfolio assets is made up of 74% Ethereum (ETH) and ERC-20 tokens, with ETH making up 51.4% of the portfolio. Alongside ETH, there are notable amounts of USDC, the fiat-pegged stablecoin issued and managed by Centre; COMP, the native token of Compound; Sand of The Sandbox metaverse project; and APE, the native coin of ApeCoin, an NFT project associated with Bored Ape Yacht Club (BAYC).
The remaining 11% of Genesis Global’s assets are marked as “others” and comprise assets in small quantities distributed across Ethereum and other smart contracting platforms, such as synthetix (SNX), BUSD, and others. These are mainly distributed between Avalanche, Fantom, and BNB Smart Chain.
While the over $414m of assets “belong” to Genesis, and it has filed for bankruptcy protection, its trading wing is still active in the markets and is not subject to chapter 11 proceedings. A statement issued by Genesis confirmed that its other subsidiaries involved in derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the bankruptcy filing and continue to provide client trading operations.
As the market continues to recover, the Genesis portfolio has seen impressive growth. Its portfolio of ETH, ERC-20 tokens, and other assets has allowed it to benefit from the cycling of the market and will likely continue to do so as the markets continue to expand.