Grayscale BTC (GBTC) Dominates ARK’s Q2 ETFs

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grayscale btc (gbtc) dominates ark's q2 etfs
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In the second quarter of 2023, Grayscale Bitcoin Trust (GBTC) shone brightly in ARK Invest’s portfolio, establishing itself as one of the top-performing assets within the investment firm’s holdings.

According to the latest quarterly ETF report from ARK Invest, GBTC played a significant role in driving impressive growth for ARK Next Generation Internet exchange-traded fund (ARKW), contributing to over 9% of its gains. Among other top performers like Tesla, Shopify, Unity Software, and DraftKings, GBTC secured the fifth position in the ETF rankings for the quarter.

Grayscale Bitcoin Trust secured a noteworthy allocation within ARKW’s portfolio, accounting for 108 basis points. Although Tesla claimed the top spot as the leading asset, representing 232 basis points, GBTC’s performance was commendable, as reported by Cointelegraph.

ARKW, known for its focus on capturing growth from internet-based products and services, cloud computing, artificial intelligence, and e-commerce sectors, allocated approximately 20% of its assets to cloud computing and around 19% to blockchain in Q2 2023.

For over two years, the GBTC had been trading at a significant discount to the value of the Bitcoin it held. However, in recent weeks, this discount has narrowed considerably, rewarding investors and signaling a potential increase in confidence in the trust or a rise in demand for its shares.

While GBTC proved to be a top performer for ARKW in Q2 2023, it trailed behind Coinbase concerning asset allocation within the fund. Grayscale Bitcoin Trust accounted for nearly as much as ARKW’s holdings of Tesla, at slightly above 7.5%.

In contrast, Coinbase emerged as the most substantial allocated asset, commanding close to 9% of the fund’s portfolio. Ranked fourth, Jack Dorsey’s crypto-related platform Block accounted for 7% of ARKW’s total assets in Q2, but its performance weighed down the fund by 30 basis points during the quarter.

Cathie Wood’s investment firm, ARK Invest, had accumulated a significant stake in Coinbase shares during the bear market. However, as Coinbase’s stock price surged to a yearly high, ARK decided to capitalize on the gains by offloading some of its shares, amounting to over $88 million in sales over the last two weeks.

Despite the sales, ARK’s CEO, Cathie Wood, remains bullish on Coinbase, influenced in part by Ripple‘s recent legal progress in a long-standing action initiated by the United States Securities and Exchange Commission. Wood expressed optimism about Bitcoin’s future, predicting that it could reach an astounding $1.5 million per coin one day.

In conclusion, Grayscale Bitcoin Trust (GBTC) had a standout performance in ARK Invest’s portfolio during the second quarter of 2023. While it played a crucial role in driving impressive growth for ARKW, it trailed behind Coinbase concerning asset allocation within the fund.

ARK’s strategic moves with Coinbase shares indicate their approach to capitalizing on market opportunities while maintaining a bullish stance on the cryptocurrency exchange. With the cryptocurrency market’s constant fluctuations, ARK Invest’s dynamic investment strategies continue to capture the attention of investors and enthusiasts alike, shaping the landscape of the digital asset space.

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