Grayscale Bitcoin Trust Takes Center Stage in ARK Invest’s Q2 2023 Success Story

• Grayscale Bitcoin Trust (GBTC) emerges as one of the top performers in Cathie Wood’s ARK Invest for Q2 2023.
• Although GBTC was outperformed in asset allocation by Coinbase, it still accounted for around 7.5% of ARK’s Next Generation Internet ETF (ARKW), on par with Tesla.

Emerging as a vanguard in the cryptocurrency investment landscape, the Grayscale Bitcoin Trust (GBTC) has etched a prominent position in ARK Invest’s Q2 2023 performance. According to the ARK Invest quarterly ETF report unveiled on July 19, GBTC proved instrumental in driving the positive momentum of the ARK Next Generation Internet ETF (ARKW).

GBTC Amplifying ARKW’s Growth

GBTC made its mark as one of the top five contributors to ARKW’s Q2 growth, which soared over 9%. It stood alongside Tesla, Shopify, Unity Software, and Draftkings as major growth drivers. As per the report, GBTC accounted for 108 basis points in ARKW, trailing behind Tesla, the top performer, which recorded 232 basis points.

ARKW, demonstrating a stellar year-to-date gain of approximately 50%, encompasses a diverse range of internet-centric products and services. The sectors covered under its ambit include cloud computing, artificial intelligence, e-commerce, and blockchain, with the latter two accounting for nearly 19% and 20% of its Q2 assets, respectively.

Asset Allocation Insights

While GBTC was a star performer for ARKW, it fell behind Coinbase in terms of the allocation volume within ARKW. GBTC commanded a significant 7.5% of ARKW’s holdings, equalling Tesla’s share. However, Coinbase surpassed GBTC to become the most allocated asset, constituting almost 9% of ARKW’s holdings.

On the flip side, crypto-related platform Block, despite accounting for 7% of ARKW’s total assets in Q2, ended up among the top five worst performers, pulling ARKW down by 30 basis points.

ARK Invest’s latest quarterly report does not encompass recent substantial sales of Coinbase stocks. As Coinbase shares ascended above $90 in mid-July, ARK has been consistently cashing in on profits, having sold nearly one million Coinbase shares in July, approximately valued at $97 million.

In the midst of these asset shuffles, ARK’s CEO Cathie Wood continues to hold a bullish perspective on Coinbase. This stance is primarily influenced by Ripple’s recent legal headway against the charges filed by the United States Securities and Exchange Commission. Furthermore, she remains highly optimistic about Bitcoin’s future, envisaging it reaching a staggering valuation of $1.5 million per coin someday.