Cathie Wood’s investment management firm ARK Invest is buying up more shares of the Grayscale Bitcoin Trust (GBTC) for the first time in over a year.
ARK made a second purchase on Monday of 176,945 shares, bringing the total number of GBTC shares the firm has to 6,546,000. The buys are ARK’s first since July 2021, when GBTC was almost three times more expensive.
GBTC is meant to track the price of Bitcoin but often trades at a premium during rallies and discounts during bear markets. At time of writing, GBTC is trading at a 44% discount, its largest in history.
Wood, a longtime Bitcoin bull and innovative technology investor, recently doubled down on her call that BTC would crack the seven-figure mark by the end of this decade, citing a wave of institutional adoption.
“Oh yes. More than $1 million… by 2030…
It does appear that institutions are moving in. They’re taking this price decline from nearly $70,000 to roughly $20,000 as an opportunity to move into a new asset class.”
Amid a push for transparency from crypto firms, Grayscale recently announced it would not be providing any on-chain proof of the BTC reserves that underlie GBTC.
“Coinbase frequently performs on-chain validation. Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure.
We know the preceding point, in particular, will be a disappointment to some, but panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept our investors’ assets safe for years.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/urzine