Ark Invest, an asset management company has made an announcement to purchase a significant amount of shares from Grayscale Bitcoin Trust (GBTC) amidst the ongoing crisis in the digital currency ecosystem.
The CEO of Ark Invest, Cathie Wood said on Monday that Ark Invest will buy 315,259 shares of GBTC after the trust discount experienced a new low. The purchased GBTC shares were worth $2.8 million and this will be the first investment of Ark Invest after more than a year.
Recent data also revealed that Grayscale is trading at a negative value of -39.81% at the time of the report. GBTC has been experiencing a low since the beginning of last year.
GBTC hit a new low during the crypto credit crisis in June and the subsequent price collapse in September. The uncertainty and pressure currently present in the blockchain industry as a result of FTX’s collapse may have resulted in the current low that GBTC is experiencing.
Ark Invest is focused on investing in disruptive technology which includes FinTech, artificial intelligence, and blockchain technology. Before Cathie Wood decides whether to make an investment, Ark Invest quantifies the firms in the context of the potential.
This requires creating a valuation and revenue model throughout the course of the following five years for each company in the portfolio.
Ark Invest Focuses on Blockchain Technology
The investment management firm intends to expand its research section in order to improve its presence in blockchain technology and other related fields. The company together with advisors from Eaglebrook announced their partnership in October that is aimed at making Ark’s crypto strategies available to its investors.
Christopher King, Founder & CEO of Eaglebrook Advisors highlighted that its partnership with Ark is intended to promote the crypto industry while providing a wealth-managed market to crypto assets that are actively managed. The Ark’s Crypto Strategies is aimed at profiting from three major revolutions by purchasing tokens created on open blockchains.
Wood had earlier stated that the metaverse adds the potential to influence the economy globally. Wood acknowledged that the metaverse has the potential to grow into a multi-trillion-dollar market.
In April, Wood revealed that her business had sold all of its PayPal holdings and expressed higher trust in the long-term future of Cash App because Cash App is more reliable, especially with Bitcoin (BTC).
“@ARKInvest has sold, completely got out of Paypal, whose Venmo is a big competitor to Cash App.
(Cash App has) much more conviction – especially when it comes to bitcoin.” pic.twitter.com/mUGkdWGMFX
— Miles Suter 🏴 (@milessuter) April 10, 2022
