Ark Innovation ETF (ARCA:ARKK) Increases Holdings in Internal Bitcoin ETF Pre-Halving, Halts Tesla Purchases

13 views 3:19 pm 0 Comments May 15, 2024

On Friday, Cathie Wood’s Ark Invest engaged in a pair trade involving cryptocurrency exchange-traded funds, a notable move preceding the highly anticipated Bitcoin BTC/USD halving event.

In terms of crypto transactions, Ark’s ARK Next Generation Internet ETF ARKW acquired 41,068 units of ProShares Ether Strategy ETF EETH, amounting to \(2.81 million. This purchase followed another acquisition of \)2.9 million on Thursday. Conversely, the fund divested 28,936 units of ProShares Bitcoin Strategy ETF BITO, valued at $813,102.

Furthermore, Ark bolstered its position in its proprietary spot Bitcoin ETF, the ARK 21Shares Bitcoin ETF ARKB, by adding 139,152 units valued at \(8.96 million. A significant investment of \)31.19 million in the ETF was made by the firm on Thursday.

The Bitcoin halving event, occurring approximately every four years to diminish the circulating supply of the premier cryptocurrency, transpired late Friday. Subsequent to the event, Bitcoin, which had witnessed a surge in anticipation, displayed a subdued market sentiment.

Tesla Buying Paused: Additionally, Ark opted not to make further purchases of shares in the electric vehicle behemoth Tesla, Inc.’s TSLA on Friday. Despite acquiring the stock across three sessions the previous week as it dipped to its lowest point since January 2023, boosting Ark’s holdings by $26.89 million.

The company led by Elon Musk may face additional setbacks in the upcoming week, following its decision to reduce prices of all EV trims in China and all except the revamped Model 3 EV trim in the U.S. Investor confidence seems tepid ahead of the company’s first-quarter earnings report scheduled for Tuesday, with expectations of another disappointing performance for the quarter.

Tesla holds the top position in Ark’s flagship ETF, the Ark Innovation ETF ARKK.

ARKK concluded Friday’s trading session at $42, marking a 2.12% decline, as per Benzinga Pro data.

Read Next: 5 Technologies That Could Be Worth $220 Trillion By 2030, Cathie Wood’s ARK Predicts: ‘The Time Is Now’

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