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GBTC and Coinbase stocks hit new lows as Cathie Wood's ARK Invest increases exposure to Bitcoin

In the middle of the FTX catastrophe, asset management ARK Invest made a significant "buy" on shares in bitcoin companies.

Photo by Mark Basarab / Unsplash

As Coinbase shares reach record lows and GBTC trades at close to a 50% discount to the already depressed Bitcoin spot price, ARK Invest snaps up deals. In the middle of the FTX catastrophe, asset management ARK Invest made a significant "buy" on shares in bitcoin companies.

Cathie Wood invests in a drop.

According to the most recent statistics (1), ARK is increasing its holdings of the Grayscale Bitcoin Trust and the Coinbase (COIN) exchange (GBTC). The crypto sector is still feeling the effects of the FTX epidemic. Thus, ARK's choice to increase exposure to two at-risk enterprises stands out.

Cathie's Ark, the company's dedicated tracking resource run by CEO Cathie Wood, added 176,945 shares of GBTC on November 21. These shares are added to a bigger batch of 273,327, dated November 15, which was purchased a week before FTX collapsed (2). Since then, while parent firm Digital Currency Group (DCG) deals with FTX issues, GBTC has attracted attention.

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Meanwhile, Coinbase is another target for ARK. The company's overall holding of 8.374 million COIN shares, close to all-time highs, has increased by 1.3 million since the beginning of November. ARK's investment in COIN shares is now its 12th largest holding.

“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.”

ARK addressed the FTX fiasco in its most recent email and noted the possible 'specifications for DCG business Genesis Trading. It also issued a warning that other "counterparty" organizations may follow. We are committed to using decentralized and open public blockchains. Is still as robust as ever," it stated. Decentralization and transparency are crucial in this situation, as well as others, to combat the egregious mismanagement brought on by centralized intermediates, not to mention dishonest centralized intermediaries.

Bitcoin price reaches fresh two-year lows.

Two weeks after issues at FTX got out of hand, the price of bitcoin (3) has continued to fall. On November 21, BTC/USD reached new two-year lows, according to TradingView (4).

After Wall Street opened, the price of the pair dropped to $15,479 on Bitstamp. It has since marginally reduced to hover opened $15,750 as of this writing.1-hour candle chart for BTC/USD (Bitstamp). The TradingView. At the same moment as COIN hit a record low, similarly troubled GBTC kept much of its discount at over.