Cathie Wood Buys $44M Worth Of Ark’s Spot Bitcoin ETF This Week While Selling BITO, Trims This Chip Stock Amid Tech Strength
By Benzinga
Ark Invest, founded by money manager Cathie Wood, added more units of its own spot Bitcoin (CRYPTO: BTC) exchange-traded fund on Friday, taking the week’s accumulation to $44 million.
What Happened: Ark bought 316,526 units of ARK 21Shares Bitcoin ETF (CBOE: ARKB) on Friday, and the value of the purchase based on the ETF’s closing price of $41.73 was $13.21 million. At the same time, Ark sold 510,337 units of ProShares Bitcoin Strategy ETF (NYSE:BITO) valued at $10.25 million.
BITO seeks to generate returns corresponding to the performance of Bitcoin by investing in Bitcoin futures contracts. On the other hand, ARKB is among the 11 spot Bitcoin ETFs the SEC approved recently. Unlike BITO, ARKB invests directly in Bitcoin.
In multiple pair trades, the Wood-run firm bought AKRB and sold BITO in three out of the four sessions of the holiday-shortened week.
The total ARKB units Ark bought this week was 1,047,648, worth $44.09 billion, while it sold 2,026,916 units of BITO valued at $41.06 million.
See Also: What Is A Spot Bitcoin ETF
A pair trade is a market-neutral strategy in which a trader bets two or more securities will diverge or converge in price. Technically, it is shorting one security while going long on another so that the bet is hedged against losses in any of the security.
As of Friday, ARKB had $309.66 million worth of Bitcoin in its holding, which is comprised 100% of the apex crypto.
Wood is a Bitcoin bull and expects the crypto to hit $1.5 million by 2030.
Profiting From AMD Strength? Ark, through its Ark Next Generation Internet ETF (NYSE:ARKW) on Friday sold 45,052 shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), with the sale likely fetching the firm $7.85 million.
AMD closed Friday’s session at $174.23, up 7.11%, according to Benzinga Pro data. The stock added nearly 19% for the week after sell-side analysts placed confidence in the company as one that is best positioned to profit out of the second wave of AI.
Three analysts raised their price targets for AMD this week while maintaining their bullish recommendations.
Photo: Shutterstock
