Ark Invest Abandons BITO, Boosts ARKB in Strategic Rebalancing of Crypto Portfolio

Ark Invest, led by Cathie Wood, has made a significant change to its cryptocurrency investment strategy, attracting attention in the industry. The company sold a large portion of its shares in the ProShares Bitcoin Strategy ETF (BITO) and instead bought shares of its own ARKB Bitcoin ETF. This move is likely aimed at simplifying their portfolio and focusing more on managing a single Bitcoin ETF.

In a recent development, Ark Invest sold 510,337 shares of BITO, indicating a broader recalibration in their investment approach. This is not the first time they have made such significant moves. The company has redirected a significant portion of BITO holdings towards its spot Bitcoin ETF, ARKB. On January 18, it was revealed that ARKW executed trades involving 758,915 BITO shares, valued at $15 million. At the same time, Ark Invest acquired 365,695 shares of ARKB for the same amount.

Cathie Wood’s Ark Invest has strategically reduced its BITO stake through ARKW while reinforcing its investments in ARKB. This move resulted in a $15.9 million infusion into ARKB, with shares closing at $43.51 on Tuesday, experiencing a modest 0.80% decrease.

The market reacted to Ark Invest’s tactical moves. BITO observed a 1.88% increase on Friday, closing at $20.09. However, there was a 9.26% weekly decline in BITO’s price due to the outflow from the spot Bitcoin ETF and strategic selling by ARKW.

Ark Invest characterizes this shift as part of a broader portfolio rebalancing initiative. The company is deliberately reshuffling shares within its portfolio to increase its focus on the Bitcoin ETF offering.

Overall, this move by Ark Invest indicates a strategic shift in their investment strategy, with a greater emphasis on their own Bitcoin ETF.