Cathie Wood's Ark Invest bought shares in Grayscale's Bitcoin Trust (GBTC), which hit a new low discount a few days ago.
Ark bought 315,259 GBTC shares on Monday, according to its latest trading filing. These stocks were added to the Ark Next Generation Internet ETF. The asset manager's purchase amounted to more than $2.8 million. This is Ark’s first purchase of GBTC since July 2021.
GBTC, which has been trading at a discount since the start of 2021, hit an all-time low of 41.69% last Thursday. Ongoing price pressure in the cryptocurrency market related to the FTX debacle put further pressure on the trust’s discount. GBTC hit a new low in June during the crypto credit crisis and again in September with a price crash.
The market price of GBTC shares is more than 40% below its net asset value, or NAV.
GBTC’s assets under management (AUM) have plummeted this year as the price of the cryptocurrency plummeted. The trust's assets under management have fallen from $30 billion in January to $10.5 billion today.
