Bitcoin (BTC) companies’ stocks are a significant investment for the asset management firm ARK Invest amid the FTX crisis.
The most recent data indicates that ARK continues to increase its holdings in both Coinbase (COIN) and Grayscale Bitcoin Trust (GBTC).
Cathie Wood Seizes the Opportunity
With the repercussions of the FTX incident still affecting the crypto market, ARK’s decision to enhance its investment in two companies impacted by the situation is noteworthy.
As per data from Cathie’s Ark, a resource dedicated to tracking CEO Cathie Wood’s activities, the firm purchased 176,945 GBTC shares on Nov. 21. This acquisition follows a larger purchase of 273,327 shares on Nov. 15, which occurred shortly after the FTX issues.
GBTC has recently gained attention due to challenges faced by its parent company, Digital Currency Group (DCG), stemming from the FTX problems.
On another front, ARK has also been focusing on Coinbase. Since the beginning of November, the firm has acquired 1.3 million COIN shares, raising its total stake to 8.374 million — close to its all-time highs. COIN shares now rank as ARK’s 12th largest investment.
In its latest newsletter, ARK acknowledged the FTX debacle’s potential impact on Genesis Trading, a company under DCG, and cautioned against potential issues with other “counterparty” entities.
Despite these challenges, ARK’s confidence in decentralized and transparent public blockchains remains strong.
Bitcoin Price Reaches New Lows
Bitcoin prices continue to drop, with fresh two-year lows recorded on Nov. 21 following the FTX turmoil.
Trading data reveals that BTC/USD plummeted to $15,479 on Bitstamp after the Wall Street opening before slightly recovering to around $15,750.
Simultaneously, COIN also hit a record low, while GBTC, facing similar challenges, maintained a significant discount of over 40% compared to the Bitcoin spot price despite ARK’s increased investment.
The opinions expressed are solely those of the author and do not necessarily reflect Cointelegraph’s views.
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