Tag: cathie wood

Cathie Wood's Ark Invest Offloads Coinbase & Robinhood Shares

Coinbase Exchange and commission-free stock brokerage, Robinhood appears to be losing the support of one of its biggest investors, Ark Invest, the investment vehicle owned by Wall Street veteran Cathie Wood.

According to the latest trade filing by the asset management firm, a little more than 1.4 million shares of Coinbase were sold, amounting to about $75 million based on the price at the close of trading on Tuesday.

The entirety of the 1.4 million Coinbase shares was not pulled from one single investment vehicle but rather from the Ark Innovation ETF, fintech innovation, and the next-generation internet ETFs.

Following the debut of Coinbase on public bourses last year April, Cathie Wood began accumulating the company’s shares in her trust in the future that the exchange was pioneering. Since the first accumulation, Coinbase shares had been nosediving, and its trend has now gotten much worse this year with the continuous onslaught the crypto ecosystem has seen thus far this year.

Cathie Wood is a prolific investor in innovative tech stocks, particularly in those with a level of exposure to Bitcoin and the crypto ecosystem. She has invested in Robinhood, Block Inc (formerly Square), and Tesla Inc, known as one of the first firms that stacked up Bitcoin on its balance sheet.

With the encompassing slump in the broader digital currency ecosystem, which has seeped into the stocks that constitute Ark Invest’s portfolio, the company’s investment vehicles have also seen a dramatic fall across the board. While the Ark innovation ETF has plunged by as much as 57.74% year-to-date, the next-generation internet and fintech innovation vehicles have shed off 58.7% and 62.14%, respectively.

Ark Invest also sold off $500,000 worth of Robinhood shares based on Tuesday’s closing price of $8.43. This targeted selloff is an indication that the investment vehicle is looking to taper down its exposure to presumably risky assets per their links to the nascent crypto ecosystem.

Ark Invest Expands Research Arm, Focusing on Blockchain Technology and AI

Ark Investment Management LLC, owned by Cathie Wood, escalated its team. The investment management firm plans to expand its research arm as it seeks deeper development in various fields, including blockchain.

Cathy Wood’s ARK Investment Management has promoted Brett Winton to chief futurist, put four senior research analysts on board, and hired five research assistants, according to official documents.

Brett Winton said：

“We believe that, collectively, artificial intelligence, robotics, energy storage, genomic sequencing, and blockchain technology will rise from less than 10% of the global public equity market capitalization to more than 60% by 2030, representing the largest period of value- creation in history.”

Winton said he would drive ARK’s long-term forecasts across convergent technologies, economies, and asset classes. ARK will dimension the impact of this unprecedented technological boom as it transforms public equities, private equities, crypto assets, fixed income, and the global economy.

ARK founder and CEO Cathie Wood believes this reorganization will expand the size of the team while enabling convergence between the technologies that create the S-curve and the S-curve.

Four senior research analysts got promoted to research directors, including Tasha Keeney, who leads financial modelling for the research team; Sam Korus, who directs the autonomous technology and robotics team; Simon Barnett, who studies life sciences; and Frank Downing, who focuses on Internet development.

In addition, ARK will hire five research assistants to focus on autonomous technology and robotics, digital health, next-generation internet and venture capital.

As the broader digital currency ecosystem tumbled across the board, as did the firm’s investment vehicles, shares in Ark Invest’s portfolio also plunged. The Ark Innovation ETF is down 57.74% so far this year.

Ark Invest also sold off $500,000 worth of Robinhood shares based on Tuesday’s closing price of $8.43 in July.

ARK Investment Launches Its First Crypto Managed Account for RIAs

Independent managed account provider Eaglebrook Advisors has announced a partnership with Ark Invest to develop the ARK Cryptocurrency Strategy and ARK Crypto Asset Strategy.

Cathie Wood’s investment firm ARK Investment is launching its first crypto Separately Managed Account (SMA) for Registered Investment Advisors (RIAs).

SMAs are portfolios created by financial advisors or investment firms for individual investors, and the partnership will allow ARK to expand its services beyond exchange-traded funds (ETFs).

Cathie Wood, Founder, CEO, and Chief Investment Officer of ARK said:

“Through our partnership with Eaglebrook, we now can offer actively managed crypto strategies to the wealth management industry. The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration among other benefits.

Advisors can differentiate themselves and add to a client’s diversification by adding this new asset class to their portfolios. Our partnership combines Eaglebrook’s best-in-class technology-driven investment platform with ARK’s established digital asset experience to deliver a differentiated, turnkey investment solution.”

The partnership will see both crypto strategies actively managed by Cathie Wood’s Ark Invest available to clients of registered investment advisors as separately managed accounts.

ARK and Eaglebrook are jointly developing the ARK Cryptocurrency Strategy and ARK Crypto Asset Strategy, where the Cryptocurrency Strategy primarily invests in Bitcoin and Ethereum, and Ark’s Crypto Asset Strategy is designed to invest in smart contract networks, DeFi and Web3, infrastructure and Top 10 – 20 coins related to scaling.

“It’s a game-changer for the industry and another sign of mainstream adoption,” said Roddy Chisholm, chief operating officer at Eaglebrook Advisors.

In early September, Ark Investment Management LLC, owned by Cathie Wood, expanded its research arm as it seeks deeper development in various fields, including blockchain and AI.

Cathie Wood: SEC to Approve Multiple Bitcoin ETFs Simultaneously

Cathie Wood, Chief Investment Officer and Portfolio Manager at ARK Investment Management LLC, has hypothesised that the United States Securities and Exchange Commission (SEC) would approve many spot Bitcoin ETFs all at the same time.

During an interview with Bloomberg on August 7, 2023, Wood, who has over 40 years of experience and started ARK in 2014, provided this significant prediction. The conversation took place in 2023.

An application for a spot Bitcoin exchange-traded fund was submitted by ARK Investment Management in June of 2023. ARK Investment Management is well-known for its focus on disruptive innovation, and the firm submitted the proposal.

The growing interest from major financial firms like BlackRock, Fidelity, WisdomTree, VanEck, and Invesco, all of which have submitted applications for spot Bitcoin ETFs similar to ARK’s, reflects a broader trend in the market.

Grayscale, a prominent digital currency investment authority founded in 2013 by Digital Currency Group, is currently engaged in legal proceedings with the SEC. Holding assets including BTC, ETH, ETC, MANA, SQL, and BCH, the company sent a letter to the regulator in July, urging simultaneous approval of all proposed spot Bitcoin ETFs. This request was made to promote fairness among applicants and prevent any single ETF from gaining an advantage. 

The SEC has until August 13, 2023 to make a judgement on ARK’s petition; so far, the agency in the United States has never granted its approval to a spot cryptocurrency ETF. ARK is proposing to list its shares in an exchange-traded fund (ETF).

The regulatory body in charge of the sector has a maximum of 240 days, which brings the deadline for their decision forward to January 2024.

Because regulators in other countries, most notably Canada, have in the past allowed analogous spot ETF filings from bitcoin firms, the drive for spot Bitcoin ETFs is gathering momentum. The demand for spot Bitcoin ETFs receives a further boost as a result of this.

The prediction of simultaneous approval made by Wood and the campaign for fairness made by Grayscale both bring to light the possibility of a shift in the regulatory atmosphere for bitcoin exchange-traded funds (ETFs) in the United States. 

ARK Invest Intensifies Investment in Robinhood

Cathie Wood, the renowned Bitcoin advocate and founder of ARK Invest, has recently intensified her firm’s investment in the cryptocurrency-friendly trading platform Robinhood (HOOD). ARK Invest made a significant move by acquiring 1.1 million Robinhood shares on November 8, amounting to an investment of over $9.5 million in a single day.

This acquisition involved three of ARK’s innovation-focused exchange-traded funds (ETFs): the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). The ARKK fund led the charge, purchasing 888,500 shares of HOOD, which constituted 78% of the total shares bought that day.

Prior to this substantial purchase, ARK had been steadily buying Robinhood shares, albeit in smaller quantities compared to the latest transaction. For instance, the day before, ARK had acquired 259,628 shares for its ARKW fund, followed by another purchase of 197,285 shares on October 23.

This aggressive investment strategy coincided with Robinhood’s announcement of its plans to expand into Europe, specifically eyeing the launch of brokerage services in the United Kingdom in the coming weeks. This move by Robinhood was announced amidst a challenging period for the company, as its stock price (HOOD) dropped over 14% following an earnings report that fell short of expectations, primarily due to reduced trading volume and a shrinking customer base.

On November 8, the closing price of Robinhood’s stock was reported by TradingView as $8.37. In a parallel development, ARK has been divesting from the Grayscale Bitcoin Trust (GBTC). On the same day, ARKW sold 48,477 GBTC shares, totaling approximately $1.4 million.

Since October 24, ARK has offloaded a total of 427,573 GBTC shares, valued at around $11.9 million at the time of this report. This selling trend is nearing the total GBTC shares ARK sold in November 2022.

In addition to these market moves, ARK has announced plans to launch new ETFs focusing on Bitcoin and Ether futures contracts. This initiative will be in collaboration with 21Shares, ARK’s primary partner in cryptocurrency ETFs.

Bitcoin's Road to $1.5 Million: Cathie Wood's Bold 2030 Prediction

In a recent interview with CNBC, Cathie Wood, the CEO of Ark Invest, projected a significant rise in the value of Bitcoin by 2030. According to her forecast, Bitcoin could reach approximately $600,000 under base scenarios. More optimistically, considering factors such as a potential bull market and the possibility of the U.S. Securities and Exchange Commission (SEC) approval, she expanded her projections to an ambitious level of $1.5 million​​.

The Rationale Behind the Prediction

Wood’s prediction is underpinned by several factors. She cites increasing institutional acceptance and Bitcoin’s finite supply and decentralized nature as key drivers. Bitcoin, often referred to as “digital gold,” is increasingly seen as a hedge against inflation and economic uncertainties, contributing to its appeal for investors. Wood remains optimistic about Bitcoin overcoming regulatory challenges, anticipating a more supportive environment as the regulatory landscape evolves​​.

Institutional Adoption and Market Dynamics

Bitcoin’s attractiveness as an investment option is further bolstered by the growing interest from both institutional and retail investors. Wood underscores the cryptocurrency’s inflation hedging capabilities and utility in remittances as central to its rising value. Historically, Bitcoin has functioned more as a speculative asset than a common currency, but this perspective is changing with increased adoption and recognition​​.

SEC and Crypto Regulation

The SEC’s role in the cryptocurrency market cannot be understated. With ongoing regulatory actions and lawsuits, such as the case against Ripple, the regulatory landscape is poised to have a significant impact on the market. Market analysts suggest that approval for spot Bitcoin ETFs could positively influence Bitcoin’s price by boosting investor confidence through regulatory clarity. Such developments could pave the way for Bitcoin’s rise as projected by Wood​​.

Bitcoin’s Current Market Position

As of now, Bitcoin is a leader in the digital currency market, valued at around $42,375. Its market trend appears to be bullish above the $41,735 mark, with resistance levels noted at $42,885, $44,738, and $46,020. Support levels are at $40,700, $39,775, and $38,350. The Relative Strength Index (RSI) reflects a neutral market stance, and the 50-Day Exponential Moving Average (EMA) is in close proximity to Bitcoin’s price, suggesting a possibility of short-term bullish movement​

Ark Invest's Cathie Wood Challenges Vanguard's Bitcoin ETF Exclusion Decision

Cathie Wood, CEO of Ark Invest, has openly criticized Vanguard’s decision to exclude Bitcoin ETFs from its offerings. This stance by Vanguard, a behemoth in the investment sector, diverges sharply from the growing acceptance and integration of cryptocurrency in mainstream financial portfolios. Wood’s criticism is not just a singular voice but a reflection of a larger shift in investor preferences and market dynamics.

Vanguard’s Conservative Stance on Cryptocurrency

Vanguard, known for its traditional investment philosophy, has maintained a conservative approach towards cryptocurrency investments. This firm stance is aligned with the company’s long-standing policy of risk aversion and focus on generating real, positive long-term returns for investors. However, this decision has sparked considerable debate within the financial community, as it seems to overlook the burgeoning significance of decentralized monetary systems like Bitcoin.

Cathie Wood’s Stance

Cathie Wood, at the forefront of investment in disruptive technologies, described Vanguard’s decision as a “terrible” move. In her view, it deprives investors of the opportunity to engage with a significant, decentralized monetary system like Bitcoin. Wood’s critique goes beyond mere opinion, highlighting a notable shift in customer behavior. Following Vanguard’s reaffirmation of its crypto-averse policy, a significant number of users began moving away from Vanguard to platforms offering Bitcoin ETFs. This customer shift underscores a growing demand for crypto-related investment products among modern investors.

The Social Media Backlash

Vanguard’s stance has triggered substantial backlash on various social media platforms, with movements like #BoycottVanguard gaining traction. This public dissatisfaction has extended beyond social media, with advocates for Bitcoin encouraging investors to transfer their assets to more crypto-friendly platforms. Given these developments, industry analysts suggest that Vanguard might eventually reconsider its position due to the changing market dynamics.

Ark Invest’s Strategic Moves and Optimism

Amid this backdrop, Ark Invest has been making strategic moves in the cryptocurrency space. The firm sold its holdings in the Grayscale Bitcoin Trust and invested heavily in the ProShares Bitcoin Strategy ETF. This shift reflects Ark Invest’s cautious yet forward-looking approach amid the current regulatory environment. Furthermore, Ark Invest has recently received approval from the U.S. Securities and Exchange Commission to launch a Bitcoin ETF, with an ambitious target of Bitcoin reaching a valuation of $1.5 million by 2030.

Conclusion

The controversy surrounding Vanguard’s decision to exclude Bitcoin ETFs highlights a pivotal moment in the investment world. As the landscape of investments continues to evolve with the increasing integration of digital assets, traditional investment giants like Vanguard may need to reassess their strategies. Meanwhile, firms like Ark Invest are embracing the transformative potential of cryptocurrencies, signaling a significant shift in the industry’s outlook towards these emerging financial technologies.

Cathie Wood predicts Bitcoin preference shift due to ETFs and growing gold connection

In a recent statement, Cathie Wood, Chief Executive Officer of ARK Invest, made the observation that there is a perceptible tendency of investors moving away from gold and toward Bitcoin. Considering the recent introduction of exchange-traded funds (ETFs) that are based on spot Bitcoin, she believes that this pattern will continue. When there is a period of economic unpredictability, such as the regional bank crisis that took place in March 2023, when the value of Bitcoin soared by forty percent, Wood believes that Bitcoin is beginning to act more like an asset that is risk-off. It is especially clear that this is the case when there is uncertainty. Bitcoin has an inverse association with interest rates, but this move is connected to Bitcoin’s growing connection with gold. This is despite the fact that Bitcoin has a connection with gold. Bitcoin’s perception among investors has undergone a significant shift as a result of this development in comparison to traditional safe-haven assets like gold.

This illustrates that ARK Invest has a strong faith in the value proposition of the cryptocurrency as well as its potential as a store of wealth by the fact that they have made this investment. As part of its aggressive strategy in the cryptocurrency market, ARK Invest has purchased shares in its own spot Bitcoin exchange-traded fund (ETF) that are now valued at $15.9 million. This action, which underlines ARK’s commitment to Bitcoin and follows the trend, is a reflection of a bigger trend of increasing institutional interest in cryptocurrencies. This sentiment is represented in this move.

These events correlate with the period in time when the correlation between Bitcoin and gold has reached its highest peak. This is the point at which the correlation is at its highest point. This demonstrates that Bitcoin is becoming more and more recognized as a credible alternative to traditional safe haven instruments. In light of the fact that Bitcoin and other cryptocurrencies have traditionally been characterized by their high degree of volatility and their emphasis on speculation, this move is significant since it signifies a significant shift in the market. Because of the emergence of spot Bitcoin exchange-traded funds (ETFs) and the fact that institutional investors like ARK Invest are increasing their investments in cryptocurrencies, there is a growing belief that Bitcoin may provide a new investment opportunity for individuals who are interested in avoiding risk, particularly during times of economic instability. This belief is fueled by the fact that ARK Invest is leading the way in increasing its investments in cryptocurrencies.

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