AS Tesla, Inc. TSLA fell for the fifth consecutive session on Thursday, exceeding a significant psychological threshold, Cathie Wood‘S Ark investment management has accelerated its acquisition of shares while bolstering its holdings in cryptocurrency-related exchange-traded funds.
Double down on Tesla: Through his ARK Innovation ETF ARKK, ARK Autonomous and Robotics Technology ETF ARKQAND ARK Next Generation Internet ETF ARKWArk bought 88,720 Tesla shares on Thursday, for a total of about $13.30 million based on Tesla’s closing price of $149.93.
Ark has steadily accumulated Tesla shares for three consecutive sessions this week, accumulating a total of $26.89 million worth of shares.
This increase in buying activity comes as Tesla faces downward pressure all week, with analysts revising their estimates and price targets lower in anticipation of a disappointing earnings report next week. next week. Concerns over the company’s recent announcement of significant layoffs and plans to seek shareholder approval for the CEO Elon Musk‘s compensation package and uncertainties surrounding the potential deprioritization of the sub-$30,000 EV contributed to the stock’s weakness.
On Thursday, Tesla closed at its lowest level since January 25, 2023.
See also: The best ETFs to buy now
Expanding exposure to cryptocurrencies: While Ark has gradually reduced its exposure to cryptocurrency-related stocks such as Coinbase Global, Inc. CURRENCY AND Robinhood Markets, Inc. HOODon Thursday it refrained from trading these shares.
Instead, Ark increased its positions in ETFs with exposure to cryptocurrencies.
- ARKW purchased 22,461 units of ARK 21Shares Active Ethereum Futures Strategic ETF ARKZ valued at $823,645.
- Of the Ark ARK Fintech Innovation ETF ARKF 490,751 units of the recently launched spot Bitcoin Bitcoin/USD ETFs, the ARK 21Shares Bitcoin ETF ARKB worth $31.19 million.
- Ark’s ARKW added 42,800 Proshares Ether Strategy ETF EETH worth $2.90 million.
ARKB, which began trading on January 11, 2024, has appreciated by about 36%, riding the wave of Bitcoin’s rally, which has risen by about 34% since its inception.
On the other hand, ARKZ, an actively managed ETF launched by the Wood-led firm, aims for 100% exposure to Ethereum ETH/USD investing in ether futures contracts. The fund, which boasts net assets of about $11 million, has returned about 24% year to date.
Meanwhile, Bitcoin has strengthened amid rising geopolitical tensions in the Middle East. According to data from Benzinga Pro, at last check, the leading cryptocurrency was up 0.72% over the past 24 hours, reaching $62,141.40.
ARKK fell 0.26% on Thursday before closing at $42.91.
Read next: 5 technologies that could be worth $220 trillion by 2030, Cathie Wood’s ARK predicts: ‘The time is now’