Cathie Wood proves the value of investing in Bitcoin. Among the large investment funds that operate (among other things) in crypto-assets, ARK Invest funds have bet big on the sector, and in particular on Bitcoin (BTC). The founder and current CEO of this investment firm, Cathie Wood, pulled off a big coup by buying at the bottom of the market, during the terrible crypto winter (bear market) of 2022. It must be said that she has been convinced for a long time that a bitcoin will reach 1 million dollars in the not-so-distant future…
Cathie Wood didn’t wait until the start of 2023 to invest in crypto
Before starting the chronicle of Cathie Wood in the present year 2023, it is essential to go back to end of 2022. Because that’s when exchange-traded funds (ETFs)ARK Invest have invested heavily in the digital asset sector.
For example, while the crypto-stock market Coinbase had had to lay off a significant portion of its staff due to the crypto winter of 2022 – like almost all crypto players during this period -, Cathie Wood’s funds invested millions upon millions of dollars in the COIN shares of Coinbase (listed on the Nasdaq stock exchange).
Likewise, while Bitcoin touched the bottom of the hole bear market in November 2022 – unless $16,000 BTC -, now the ARK Invest funds were betting without hesitation on the shares of Grayscale Bitcoin Trust (GBTC) from Grayscale Investments. The latter fund being based on real hard cash bitcoins.
In the final months of 2023, Cathie Wood started taking profits
There director of ARK Invest applied to the comma the financial adage which states that “ we buy low and sell high “. So, while we have just seen his purchases at the bottom of the crypto bear market (late 2022 and very early 2023), now his funds start to resell (a little bit) of their assets linked to cryptocurrencies.
Less than a dozen months have passed since Cathie Wood’s purchases, but with bitcoin rising from 16,000 over $40,000it was time to start “ take profit » (take your profits). Coinbase’s COIN shares and Grayscale’s GBTC shares are thus sold in small pieces (almost drip-drip) since fall 2023.
It must be said that there is a “ technical reason » to these sales. Indeed, ARK Invest ETFs seek to balance their assets, so that no asset does not alone exceed 10% in dollar value of the fund. However, even with the recent small resales of COIN and GBTC, these assets remain above this threshold of 10% in the various funds in which they are integrated. We are therefore not about to see an end to these “micro” sales of ARK Invest, especially if a new bull run of Bitcoin and the crypto market is born.
Gary Gensler and the SEC: the final obstacles to Bitcoin’s upward explosion
Cathie Wood is thinking big for Bitcoin and the crypto-asset market. But across this bright path lies Gary Genslerthe president of the Securities and Exchange Commission (DRY).
The latter’s obstinacy not approving spot Bitcoin ETFs is a real brake to the rise of BTC. In any case in the eyes of the director of ARK Invest, who considers that Gary Gensler is leading a unjust war to the crypto sector, his “personal Vietnam”.
Cathie Wood, however, remains very confidentand is convinced that the SEC will eventually give in and approve a spot Bitcoin ETF. When the Gary Gensler obstacle is eventually overcome, BTC will resume its road towards 1 million dollars. It must be said that ARK Invest is part of – as BlackRock and other giants – of the hard race candidates for a spot Bitcoin ETF, with its “ ARK 21Shares Bitcoin ETF “.