Cathie Wood, the founder and CEO of Ark Invest, has once again demonstrated her “buy the dip” conviction. According to reports, on Tuesday when Bitcoin prices tumbled below the $30,000 mark, Ark’s ARK Next Generation Internet ETF purchased more than one million shares of the Grayscale Bitcoin Fund (GBTC). This exchange-traded product had already held over 8 million GBTC shares, representing nearly $240 million in crypto exposure through the trust.
Wood’s Long-Term Crypto Outlook
Wood has been a consistent advocate for digital assets, famously predicting that Bitcoin could reach $500,000 in the long run. Her track record of correctly foreseeing Tesla’s stock surge has given her a nearly prophetic status among investors. The recent acquisition is a clear signal that she is putting her money where her mouth is. In addition to GBTC, Ark also added more than 200,000 shares of Coinbase to its ARK Innovation ETF. The firm now holds a total of 3,631,850 Coinbase shares, worth over $821 million at current prices.
GBTC Discount Narrows, Boosting Returns
Wood’s timing appears well placed. Within just two days, Bitcoin recovered back above the psychological $30K level. Moreover, the dynamics of the GBTC fund have worked in Ark’s favor. Grayscale Bitcoin Trust typically trades at a premium or discount to its net asset value (NAV). Since last week, the discount on GBTC has narrowed by roughly 66%, now hovering around only 4% below actual Bitcoin. This means Wood’s investment has already gained nearly 10% from the combined price recovery and discount compression.
Despite criticism over Coinbase’s underwhelming stock performance since its direct listing, Wood remains confident in the exchange’s future. This is not the first time Ark has bought the dip on Coinbase; in May 2021, the firm purchased 1.2 million shares in a similar downturn.
The moves underscore how institutional investors like Ark Invest are leveraging market panic to accumulate assets they believe will appreciate over the long term. Wood’s continued bet on crypto reflects her conviction that Bitcoin and the broader digital asset ecosystem are still in their early stages of adoption.
Industry observers will be watching to see if her latest purchases prove as prescient as her earlier calls on Tesla and Bitcoin.