GBTC’s share in total ARKW’s holdings accounted for around 7.5%, roughly the same amount as Tesla, in Q2 2023, while Coinbase was the biggest allocated asset, accounting for nearly 9%.
Digital currency investment product, Grayscale Bitcoin Trust (GBTC), was one of the best performers at Cathie Wood’s ARK Invest in the second quarter of 2023.
According to ARK’s latest quarterly ETF report published on July 19, GBTC was one of the top contributors to the success of its ARK Next Generation Internet exchange-traded fund (ARKW) in Q2.
According to the data, GBTC was one of the top five drivers of ARKW’s growth of more than 9% in Q2, alongside other top performers like Tesla, Shopify, Unity Software and Draftkings. Ranked in fifth place, Grayscale accounted for 108 basis points at ARKW, while the top asset, Tesla, amounted to 232 basis points, the document notes.
ARKW is one of the leading ETFs operated by ARK in terms of year-to-date gains, up around 50% in the period to June 30. Aiming to capture internet-based products and services, cloud computing, artificial intelligence and e-commerce, ARKW had nearly 20% of assets related to cloud computing and about 19% related to blockchain in Q2.
Although GBTC was a top performer for ARKW in Q2 2023, the asset trails Coinbase in terms of the amount of asset allocation at ARKW. Grayscale accounted for nearly as much as ARKW’s holdings of Tesla, or slightly above 7.5%, while Coinbase was the biggest allocated asset, accounting for nearly 9%.
Other top assets by allocation also include Jack Dorsey’s crypto-related platform Block, which is ranked fourth, and accounted for 7% of the ARKW’s total assets in Q2. Unlike GBTC, Block was among the top five detractors for ARKW’s performance though, dragging it down by 30 basis points in Q2.
Related: Grayscale CEO: BlackRock ETF filing a ‘moment of validation’ for Bitcoin
The latest quarterly report by ARK doesn't include the company’s most recent large sales of the Coinbase (COIN) stock. As COIN shares reached above $90 in mid-July, ARK has been actively taking profits, selling nearly one million Coinbase shares in July, worth around $97 million.
Despite selling the stock, ARK CEO remains bullish on COIN, particularly due to Ripple’s latest legal progress in the long-running action initiated by the United States Securities and Exchange Commission. On July 17, Wood reiterated her bullish stance on Bitcoin, predicting that it will hit $1.5 million per coin one day.
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