Cathie Wood continues to buy crypto assets despite FTX’s bankruptcy. By

© Reuters – Cathie Wood’s Ark Invest investment fund isn’t backing down from cryptocurrencies after a dizzying price drop and the bankruptcy of FTX. The Ark Next Generation ETF bought 315,259 shares of the Grayscale Bitcoin Trust on Monday. The latter now represents 4.6% of the Ark fund’s assets.

There is no such thing as a pure ETF, and Grayscale’s vehicle is seen as a proxy for gaining exposure to the most popular crypto. However, its price has fallen over 80% in the past year and the fund is trading well below the value of the bitcoin it holds.

The crypto industry has been in turmoil for two weeks as FTX, one of the most reputable crypto exchanges, imploded. The company filed for bankruptcy last week after rival Binance pulled out of a potential bailout deal, and CEO Sam Bankman-Fried resigned amid reports that FTX had left associated hedge fund Alameda Research. negotiate client funds.

ARK said in a Monday newsletter that there were “several upsides” to these events, including the fact that the bitcoin blockchain continued to operate during the FTX crisis and arguing that it would push the industry forward. to be more transparent.

“ARK’s belief in the long-term promise of public blockchains across currency, finance and the internet does not waver. As the crypto-asset market may work under pressure from sell-offs and liquidity shortages in the short term, we believe this crisis is purging the bad actors and will improve the health of the crypto ecosystem with more transparency and decentralization in the longer term.”

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