A few days ago Cathie Wood, CEO of investment fund Ark Invest, increased her exposure to Bitcoin, Ethereum, and Tesla.
Specifically, the billionaire investor has increased the share of BTC in her own Bitcoin ETF “ARKB”, as well as purchasing ETH from the ARKW fund and various Tesla stocks.
This approach denotes Cathie Wood’s bullish position towards the cryptocurrency market and the electric vehicles sector.
Let’s see everything in detail below.
Cathie Wood adds new Bitcoin holdings to her ARKB ETF and buys Tesla shares
According to the transactions made by Ark Invest at the end of last week’s trading sessions, Cathie Wood heavily bought Bitcoin, Ethereum, and Tesla stocks, while liquidating several positions in strategic sectors of the stock market.
In detail, it is evident how the founder of the investment fund located in St. Petersburg, Florida, is increasing her exposure in some very specific sectors of the risk-on markets.
On the cryptocurrency front, we see how Wood added Bitcoin shares to his own ETF on April 18th ARK 21Shares Bitcoin (ARKB), for a total of 490,751 shares marking a significant investment of almost 30 million dollars.
This latest purchase brings ARKB to manage a total of 45,177 BTC, with a value of 2.8 billion dollars.
Meanwhile, the CEO of ARK also purchased shares of ETH, bringing a total of 42,800 shares of ProShares Ether Strategy ETF (EETH) into his ARK Next Generation Internet ETF (ARKW) fund for a value of approximately 2.83 million dollars.
At the same time ARKW also added 22,461 shares of the ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ), equivalent to a value of 834,000 dollars.
Speaking of Ethereum, we remember how earlier this year Cathie Wood herself had predicted that the second cryptocurrency by market capitalization will surpass Bitcoin in terms of performance during this bull run.
Cathie Wood expects #Ethereum will most likely outperform Bitcoin in the next Bull Run. pic.twitter.com/FEK9YAIZWo
— Crypto Rover (@rovercrc) January 15, 2024
To complete ARK’s CEO’s weekly shopping, we find the purchase of 88,720 shares of Tesla Inc (NASDAQ:TSLA), for a total of almost $13.79 million.
Even in this case, Wood has repeatedly reiterated being bullish on Tesla.
However, despite the optimism about the electric vehicle sector, following the news in which Elon Musk announced that he had cut prices for all EV models in China and all EV models except the Model 3 in the United States, the investor decided to suspend the buying phase on Friday.
$TSLA | Cathie Wood Sees Value In Tesla Wreckage As Ark Buys $13M Worth Of EV Giant’s Stock, Loads Up On Bitcoin And Ethereum ETFs
Ark has been a buyer of Tesla for three straight sessions this week, buying $26.89 million worth of stock on a cumulative basis.
On Thursday, the… pic.twitter.com/Rrs7HpkVvX
— Benzinga (@Benzinga) April 19, 2024
ARK carries out several important sales sessions in the technology, pharmaceutical, and sports betting sectors, in contrast to purchases.
In particular, sales of DraftKings Inc (NASDAQ:DKNG) shares for $8.84 million, Zoom Video Communications Inc (NASDAQ:ZM) for $8.9 million, Twilio Inc (NYSE:TWLO) for $10.73 million, and 0X Genomics Inc (NASDAQ:TXG) for $3.39 million stand out.
Cathie Wood has also decreased her holdings in Exact Sciences Corp (NASDAQ:EXAS), Regeneron Pharmaceuticals Inc (NASDAQ:REGN), MercadoLibre Inc (NASDAQ:MELI), NU Holdings Ltd (NYSE:NU), StoneCo Ltd (NASDAQ:STNE), and Vertex Pharmaceuticals Inc (NASDAQ:VRTX).
Market analysis for Bitcoin: is the bull market starting again?
The increase in Cathie Wood’s exposure to Bitcoin, Ether, and Tesla highlights how the investor is extremely positive about the medium-term future of these products.
Focusing on Bitcoin, which represents the asset where ARK is most exposed and where the largest purchases have been recorded, let’s see what the graphic situation of the cryptocurrency is.
Following the heavy retracement of the past weeks that brought BTC from $72,000 down below the $60,000 threshold, we are seeing a return of demand in the market in these last days.
From Thursday onwards, just as Wood added Bitcoin quotes to his AKRB ETF, the crypto reversed its short-term course bringing it back to $66,000, where it is currently being traded.
In the coming days, the match that will actually decide which direction the market will take will be played.
If BTC manages to quickly return above $70,000 accompanied by significant volumes, we could celebrate a return to the bull market in a big way, even though at the moment it seems to be the least likely scenario.
If it were to be rejected at the current price zone, or near the $68,000 where we find an important resistance, we will have to observe how far the bears will be able to push.
If the leg down were to extend below $55,000 aggressively targeting $50,000, the chances of a bullish restart would be significantly reduced.
On the contrary, a reaction of demand in the price range between $60,000 and $58,000 could be what is needed to bring prices back to new all-time highs, ensuring at the same time a “healthy” trend that is not too extended to the upside.
Pay attention to the market volatility, particularly high in these contexts, and to fake movements that could lead us to sell in panic or buy in FOMO.
