Ark Invest has purchased GBTC shares for $1.4 million!

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Ark Invest has purchased GBTC shares for $1.4 million! Ark Invest bought more than 315,000 shares of GBTC last week with $2.8 million. Coinbase has Bitcoins backed by GBTC. Ark Invest, led by Cathie Wood, has reported investing $1.4 million to acquire 176,945 shares of Grayscale’s Bitcoin Trust (GBTC) fund, according to an investor email.

The company ended up getting its second GBTC in as many weeks with this transaction. Bloomberg reports that a group of investors in Florida spent $ 2.8 to buy more than 315,000 GBTC shares last week. At the relevant time, about 6.357 million GBTC, or 0.4% of the company’s total, is held by Ark.

Ark Invest buys the nail

The GBTC currency allows investors to gain exposure to Bitcoin without having to buy and hold Bitcoin. Coinbase has Bitcoins backed by GBTC. In the wake of the FTX hack, several large central cryptocurrency exchanges have disclosed their client funds.

However, for security reasons, Grayscale has chosen not to provide details of which bitcoin supports GBTC. When crypto investors found out about this, the huge drop in GBTC increased. In its latest earnings report, Grayscale said its underlying GBTC was worth $9.9 billion, or $14.43 per share. In contrast, the current market price of GBTC is only $8.28, a drop of 42.6% from the value of Bitcoin. According to information provided by Ycharts, GBTC’s currency rose 45.08% on Friday. This shows that the market price of GBTC shares is lower than the real value of Bitcoin. The GBTC price drop is not new. GBTC shares have been trading below their intrinsic value since February 2021.

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