Cathie Wood’s ARK Holdings: A Closer Look At The Recent Tesla Purchases

Institutional investors are eager to gain exposure to cryptocurrency at any cost, and Ark Investment has set an example. Recently, Cathie Wood’s ARK Holdings reportedly purchased 13,243 shares of Tesla Inc. (NASDAQ: TSLA). The multi-billion dollar exchange-traded fund (ETF) is placing a significant bet on electric vehicles as part of its investment in disruptive technologies.

It’s worth noting that Tesla holds a significant amount of Bitcoin, making ARK Holdings investors indirect holders of the cryptocurrency.

Let’s explore this latest update in greater depth.

Ark Invest Bets Big on Tesla

Since the calendar flipped, Cathie Wood has made several purchases of Tesla shares. The first purchase was made on January 3, of about 144.776k TSLA shares according to data provided by Cathiesark.com. The second batch was announced on January 6 about 24.506k TSLA shares. The third purchase was completed on January 10, of about 75.565k Tesla shares. The fourth purchase was made on January 11, of about 69.060k Tesla shares.

The fifth purchase of Tesla shares by ARK holdings this year was made on January 13 for about 168.989k. The second latest purchase was announced on January 18 of about 32.447k Tesla shares.

The Bigger Picture

According to market data provided by MarketWatch, Tesla shares have risen approximately 16% year-to-date (YTD), but have dropped about 53% over the past year. Despite this, Cathie Wood remains extremely bullish on the electric vehicle company led by Elon Musk. Following the recent purchase, Ark Invest now owns approximately 0.13% of Tesla, which represents a weighting of about 7.67% in the former’s fund. The company is convinced that Tesla will outcompete its rivals due to its cutting-edge technology.

According to @skorusARK’s research, having leveraged off the consumer electronics industry (which most other auto manufacturers did not do), Tesla’s batteries are three years ahead of the competition in terms of costs for a given range and performance.
— Cathie Wood (@CathieDWood) January 13, 2023

Ark Invest is bullish on the price of Bitcoin and the underlying blockchain technology that supports the cryptocurrency market. Additionally, the firm has made several significant purchases of Coinbase Global Inc. shares in recent times. On the other hand, Ark Invest has adopted a wait-and-see strategy on Grayscale’s GBTC following the issues faced by Genesis Trading, a sister company at Digital Currency Group.

Source: https://coinpedia.org/news/cathie-woods-ark-holdings-a-closer-look-at-the-recent-tesla-purchases/