Cathie Wood's Ark Invest bought shares in Grayscale's Bitcoin Trust (GBTC) on Monday, days after the trust's discount reached a new low.
Ark purchased 315,259 shares of GBTC on Monday, according to its latest trade filing. The shares were added to the Ark Next Generation Internet ETF. The asset manager's purchase comes to over $2.8 million. This represents Ark's first GBTC purchase since July 2021.
GBTC, which has been trading at a discount since the beginning of 2021, hit a record low of 41.69% last Thursday. The ongoing price pressure in the crypto market relating to the FTX collapse put further pressure on the trust's discount. GBTC reached a new low in June during the crypto credit crisis and again in September as prices plummeted.
The discount represents the market price of GBTC shares, which are more than 40% lower than its net asset value, or NAV. GBTC was trading at a discount of -39.81% today, according to The Block's data.
GBTC's assets under management (AUM) have cratered this year in line with plummeting crypto prices. The trust's AUM has fallen from $30 billion in January to $10.5 billion today, according to The Block's data.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.