On the day that the famous social media behemoth run by Jack Dorsey began enabling users to give and receive tips using Bitcoin as part of a larger drive to let users generate money from the service, Cathie Wood’s investment business Ark Invest purchased 829,907 shares worth $55.34 million of Twitter shares.
The timing of the news of Wood’s purchase is intriguing. On the same day that Twitter, the prominent social media business, unveiled a feature that allows users to send and receive tips in Bitcoin, Ark Invest utilized two of its ETFs (the ARK Innovation ETF and the ARK Next Generation Internet ETF) to acquire Twitter equities.
The ARK Innovation ETF, the investment firm’s flagship fund, bought 661,141 shares, while the ARK Next Generation Internet ETF bought another 168,766 shares.
Twitter shares rose 3.80 percent on Thursday to end at $66.69 after unveiling the Bitcoin tipping function.
Ark Invest previously held Twitter stock. After Jack Dorsey promised investors that the flagship cryptocurrency Bitcoin would be part of the social media company’s future, the popular investment firm bought one million shares in Twitter only a month before earning some gains in August.
As a consequence, out of approximately 50 equities, Twitter has become ARK’s third-largest stake.
The Investment Strategy of Cathie Wood
The CEO of ARK Invest, Cathie Wood, looks to have taken the investment world by storm.
Wood’s flagship fund, the ARK Innovation ETF, beat the market by 9x last year – 149 percent vs. 16 percent – earning her the title of the greatest stock picker of the year.
With Wood’s investment strategy centered on technological disruption, it’s only natural that ARK’s exchange-traded funds accept cryptocurrencies.
Cathie Wood‘s Twitter wager shows her belief that cryptocurrency’s ongoing regulatory difficulties would be resolved. As cryptocurrencies and exchanges have grown in popularity, regulatory agencies throughout the world have increased their scrutiny.
Wood issued a bullish prognosis for Bitcoin on September 14, predicting that it might reach $500,000 in five years, one of the most audacious predictions on Wall Street.
Aside from that, the ARK Investment management business just received approval to buy Canadian Bitcoin exchange-traded funds.
The asset management firm amended the prospectus for its ARK Next Generation Internet ETF on September 13 to allow Canadians to participate in Bitcoin exchange-traded funds (ETFs).
The fund may invest in the Grayscale Bitcoin Trust (GBTC) or other pooled investment vehicles in Bitcoin, such as exchange-traded funds headquartered and listed for trading in Canada, according to an updated SEC filing for the ARK Next Generation Internet ETF (Canadian Bitcoin ETFs).
The Grayscale Bitcoin Trust already invests in Bitcoin through the ARK Next Generation Internet ETF. With a 5.52 percent weight worth more than $313 million, GBTC is the ETF’s second-largest position.
Wood also has stock in three well-known public companies (Robinhood, Coinbase, and Square Inc) and is involved in bitcoin adoption.