Ark Investmentby Cathie Wood, reported holding 639,069 shares in Grayscale’s Ethereum Trust in the first quarter of 2021, which are currently valued at around $ 20.9 million at today’s prices.
ARK Investment has acquired 639,069 shares of the Ethereum Trust from Grayscale. pic.twitter.com/ofXD5F7QpA
– Documentation from Ethereum (@DocumentEther) May 18, 2021
News of Ark’s largest investment in Ethereum has been viewed as a bullish signal by proponents of Ethereum and DeFi. Myth Capital founder and bankless author Ryan Adams, stressed how important the development was:
“Do you remember when they told you that institutions would never buy ETH? They continue to underestimate this asset. ETH IS MONEY. “
Ether’s upward momentum has been picking up recently;; the co-founder of the venture capital firm Framework Ventures, Vance Spencer, tweeted today:
“There have been many times when cryptocurrencies would not have been strong enough to survive without BTC as the dominant narrative. I no longer believe that this is the case. Regime change is coming. “
Cointelegraph reported on May 5 that Institutional managers bought Ethereum for $ 30.2 million in late April, hitting an all-time high of $ 13.9 billion.
Despite the excitement about buying ETH Ark’s report to the SEC for the first quarter earlier this month shows that the company’s portfolio is still leaning heavily in favor of Bitcoin. Ark Investment announced it owns 8.6 million shares of Grayscale’s Bitcoin Trust, valued at more than $ 298 million.
However, TradingView data shows this Grayscale’s ETH Trust was much more lucrative compared to Grayscale’s Bitcoin Trust in 2021.
Grayscale’s ETH Trust (ETHE) share price is up 179% this year, from $ 11.70 on Jan. 4 to $ 32.70 today. Grayscale’s BTC Trust (GBTC) stock price rose just 1.7% over the same period, from $ 33.80 on Jan. 4 to about $ 34.38 today.. GBTC was trading at a 15-20% discount on its Bitcoin holdings.
Cathie Wood and Ark Investments don’t share the same environmental concerns recently raised by Elon Musk and Tesla.
In a May 17 newsletter published by the company, Ark questioned how well Elon Musk had done his research, noting that “Tesla’s decision was apparently triggered by Greenidge’s plans to revive a coal-fired power plant to produce bitcoin.”.
The company highlighted that Greenidge had not only made it clear that its facility runs on natural gas and feeds the grid, but also that it bought carbon credits to offset the emissions::
“We believe that concerns about Bitcoin’s power consumption are wrong. Contrary to consensus thinking, we believe that the effects of Bitcoin mining could turn out to be positive for the environment. “
According to the Bazinga media company on May 18 Ark Investment recently added an additional 259,897 shares of Coinbase through the Ark Innovation ETF and the ARK Next Generation Internet ETF.Valued at more than $ 62 million at the current price of around $ 241.