Ark Investment tips $20M into Grayscale Ethereum Trust

Cathie Wood’s Ark Investment has reported holdings of 639,069 shares in Grayscale’s Ethereum Trust for Q1 — at the moment value round $20.9 million at at this time’s costs.

The news of Ark’s main funding into Ethereum was seen as a bullish signal by Ethereum and DeFi proponents. Mythos Capital founder and Bankless creator Ryan Adams emphasized how important he noticed the event:

“Remember when you told you the institutions would never buy ETH? They keep underestimating this asset. ETH IS MONEY.”

Ether bulls have been rising noticeably extra assured just lately, with the co-founder of enterprise capital agency Framework Ventures, Vance Spencer tweeting earlier at this time:

“There were many times when crypto would not have been strong enough to survive without BTC as the dominant narrative. I no longer believe this is the case. Regime change is coming.”

Cointelegraph reported on May 5 that institutional managers bought $30.2 million worth of Ethereum on the finish of April, bringing their whole holdings to an all-time excessive of $13.9 billion.

Despite the joy across the ETH purchase, Ark’s Q1 filing with SEC earlier this month reveals the agency’s portfolio nonetheless closely leans in Bitcoin’s favor. Ark reported holdings of 8.6 million shares in Grayscale’s Bitcoin Trust, value greater than $298 million as of at this time.

Data from TradingView nevertheless reveals that Grayscale’s ETH Trust has been way more profitable in comparison with Grayscale’s Bitcoin trust in 2021.  

The share worth of Grayscale’s ETH Trust, or ETHE, has elevated by 179% this yr, up from $11.70 on Jan. 4, to $32.70 as of at this time. The share worth of Grayscale’s BTC Trust, or GBTC, has elevated by a mere 1.7% in the identical time-frame, up from $33.80 on Jan. 4, to round $34.38 at this time. GBTC has been buying and selling at a 15-20% low cost to its Bitcoin holdings.

Cathie Wood and Ark Investments don’t share the identical environmental considerations as expressed just lately by Elon Musk and Tesla.

In a May 17 e-newsletter printed by the agency, Ark questioned how nicely Elon Musk had performed his analysis on the subject, noting that “Tesla’s decision seems to have been triggered by private equity firm Greenidge’s plans to revive a coal power plant to mine Bitcoin.”

The agency highlighted that Greenidge had clarified not solely that its plant is powered by pure fuel and feeds the grid but additionally that it purchased carbon credit to offset the emissions:

“In our view, the concerns around Bitcoin’s energy consumption are misguided. Contrary to consensus thinking, we believe the impact of Bitcoin mining could become a net positive to the environment.”

According to news outlet Bazinga on May 18, Ark additionally just lately added one other 259,897 Coinbase shares to its holdings by way of the Ark Innovation ETF and the ARK Next Generation Internet ETF — value greater than $62 million at at this time’s worth of round $241.