Cathie Wood’s ARK Invest adds more Bitcoin exposure as GBTC, Coinbase stock hit new lows

Market Analysis

Bitcoin (BTC) firms’ shares are a major “buy” for asset manager ARK Invest in the midst of the FTX meltdown.

The latest data confirms that ARK continues to up its holdings of both exchange Coinbase (COIN) and the Grayscale Bitcoin Trust (GBTC).

Cathie Wood buys the dip

With FTX contagion still rippling through the crypto industry, ARK’s decision to add exposure to two firms caught in the firing line stands out.

According to numbers supplied by CEO Cathie Wood’s dedicated tracking resource, Cathie’s Ark, the firm added 176,945 GBTC shares on Nov. 21.

These join a larger tranche of 273,327 shares from Nov. 15, that purchase was completed just a week after FTX fell apart.

ARK Invest GBTC holdings chart (screenshot). Source: Cathie’s Ark

Since then, GBTC has come under the spotlight as parent company Digital Currency Group (DCG) battles FTX problems of its own.

Coinbase is, meanwhile, another target for ARK. Since the start of November, the firm has added 1.3 million COIN shares, taking its total stake to 8.374 million — near all-time highs.

COIN shares now account for ARK’s 12th-largest position.

ARK Invest COIN holdings chart (screenshot). Source: Cathie’s Ark

Commenting on the FTX debacle in its latest newsletter, ARK acknowledged the potential implications for DCG company Genesis Trading and warned that other “counterparty” entities may be next.

“That said, our conviction in decentralized and transparent public blockchains is as strong as ever,” it nonetheless added:

“In this case and others, decentralization and transparency are paramount as antidotes to the gross mismanagement associated with centralized intermediaries, not to mention fraudulent centralized intermediaries.”

BTC price hits new two-year lows

Bitcoin price action, meanwhile, continues to decline, two weeks after problems at FTX spiraled out of control.

Related: Bitcoin price levels to watch as traders bet on sub-$14K BTC

BTC/USD hit fresh two-year lows on Nov. 21, data from Cointelegraph Markets Pro and TradingView shows.

The pair dipped to $15,479 on Bitstamp after the Wall Street open, recovering only slightly to circle $15,750 at the time of writing.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

COIN itself hit a record low at the same time, while equally embattled GBTC retained the majority of its discount at over 40% versus the Bitcoin spot price despite ARK’s buy-in.

GBTC premium vs. asset holdings vs. BTC/USD chart. Source: Coinglass

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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