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The price of the flagship crypto asset, Bitcoin, was briefly below $30,000 for the first time this month. While many were concerned regarding the price drop, others bought in the dip. Cathie Wood’s asset management company, ARK Investment Management, is one of them.
The price of Bitcoin has been quite volatile, as shown in the graph by CoinGecko below.
According to reports, while the price of BTC was below $30,000, the company purchased 310,000 shares of the Grayscale Bitcoin Trust (GBTC). The purchase was made by ARK for its Next Generation Internet ETF (ARKW).
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Can This Highlight Bitcoin’s Significance?
ARK Invest already has more than $52 billion of assets under management. It has now added more BTC in its books, despite the volatility in its price.
The amount of BTC purchased is not that big, however, the timing of the purchase is what caught the most attention. Wood’s asset management company invested in the flagship digital asset while the price was below $30,000. Many people were doubtful of BTC’s future when the price dipped but it seems ARK’s investment has painted a different picture.
This is not the first time that Wood’s company has purchased Bitcoin while the price was noticeably low. According to reports, the company purchased 1 million GBTC shares for the ARKW ETF the last time Bitcoin’s price went below $30,000.
ARK Investment Management is a well-known firm that is not only exposed to Bitcoin but also owns shares of firms related to digital currencies.
- The company holds more than $900 million worth of Coinbase exchange stocks.
- This firm has a $2 billion position in Tesla.
- ARK Invest recently purchased another $54 million worth of Square Inc.’s shares.
It has also been reported that since the asset management company purchased the largest digital asset its price went from around $29,500 to approximately $32,000. Therefore, it does seem like ARK’s investment has worked in favor of Bitcoin.
What Should BTC Investors and Traders Know?
According to reports, ARK Investment Management is not the only company that invested in Bitcoin during its price volatility seen in the last few weeks.
The number of entities selling the flagship crypto asset has decreased from 150,000 to 100,000. However, the number of entities accumulating the digital currency has noticeably increased from 190,000 to 250,000.
It is also believed that the accumulation of the cryptocurrency BTC is being led by the Whales.
Lex Moskovki, the Chief Investment Officer at Moskovski Capital, recently took to Twitter and pointed out that the “Whales are unironically accumulating”.
This could indicate that even though the price of the largest crypto asset may be volatile, it is very less likely to lose its significance and value.
Therefore, if you are looking to become a crypto investor and want to purchase in BTC make sure you use some of the safest and suitable crypto exchanges.
On the other hand, if you are looking to trade Bitcoin, sign-up to Phemex today. You can use this link to claim a bonus of up to $1,200 for deposits above 1 BTC and $200 for deposits below 1 BTC.
