FINANCE

Ethereum Trust Fund's holdings exposed, buying more Coinbase stocks, Ark Investment continues to bet on the crypto market?

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Ethereum Trust Fund

Ark Investment disclosed in its first-quarter financial report submitted to the SEC that the investment firm holds a total of 639,069 shares of Grayscale Ethereum Trust (ETHE), valued at over $20 million, and its funds continue to increase their holdings of Coinbase stock.

Ethereum Trust Holdings

According to the quarterly report submitted by Ark Investment Management to the U.S. Securities and Exchange Commission (SEC), as of March 31, 2021, the company holds a total of 639,069 shares of Grayscale Ethereum Trust (ETHE), valued at approximately $22.11 million, and 8,675,881 shares of Grayscale Bitcoin Trust (GBTC), valued at nearly $360 million.

Although the investment in Ether is not significant for Ark, Ethereum and DeFi supporters still see this as a strong bullish signal. Ryan Adams, co-founder of Mythos Capital and Bankless, quoted this news and stated:

"Remember when you told yourself institutions would never buy ETH? They have consistently underestimated this asset. ETH is money."

However, since the document is a quarterly report for 2021, it is uncertain whether Ark has reduced its holdings in the recent downturn. According to ycharts data, although the premium rate of ETHE rebounded after hitting a record low of -14.34% on May 13, it is still trading at a discount of approximately -6%.

Source: ycharts

Continued Bets on the Crypto Market?

Following Tesla CEO Elon Musk's announcement to halt Bitcoin payments due to concerns over the energy used in Bitcoin mining, in a report released on May 17, Ark Investment expressed skepticism towards Musk's views and noted that "Tesla's decision seems to have been spurred by Greenidge, a private equity firm's decision to revive a coal power plant for Bitcoin mining."

However, Ark Investment emphasized in the report that Greenidge's plant is actually powered by natural gas, and the company even purchases carbon credits to offset emissions, stating that Bitcoin mining can have a positive impact on global energy:

"We believe concerns over Bitcoin's energy consumption are misguided. Contrary to popular belief, we believe Bitcoin mining can promote the greening of the energy industry and have a positive impact on the environment."

The news of Tesla halting Bitcoin payments has intensified the overall pullback in the cryptocurrency market; however, Ark Investment still seems confident in the future of the crypto market. According to a report by the U.S. financial news media Benzinga yesterday,Ark Investment recently added 259,897 shares of Coinbase in its two funds, Ark Innovation ETF and ARK Next Generation Internet ETF, with a market value exceeding $62 million.