Cathie Wood's Ark Investment was rewarded for buying 639,069 shares in Grayscale Ethereum Trust for the first quarter, priced at approximately $20.9 million at current rates.
The news of Ark's significant investment in Ethereum was interpreted positively by ETH and Defi supporters. Ryan Adams, founder of Mythos Capital and author of Bankless, emphasized the significance of the development:
“Remember how you said corporations will never purchase ETH? They continue to underestimate this commodity. MONEY IS MADE OF ETH.”
“There were many occasions when crypto would not have been able to survive if BTC had not been the dominant narrative. This is no longer the case in my opinion. A regime shift is on the way.”
Despite the excitement around the ETH purchase, Ark's filing with the SEC earlier this month reveals that the firm's portfolio still heavily favors Bitcoin. Ark announced 8.6 million shares of Grayscale's Bitcoin Trust, valued at more than $298 million today.
The trust owns over 649,130 Bitcoins or about 3.1 percent of the total supply of Bitcoin. According to its website, it manages approximately $31 billion in assets.
Cathie Wood of Ark Investment does not share Elon Musk's and Tesla's recent environmental concerns.
Ark challenged Elon Musk's research on the subject in a May 17 newsletter, noting that "Tesla's decision appears to have been prompted by private equity firm Greenidge's plans to reopen a coal power plant to mine Bitcoin."
Greenidge, according to the company, has explained not only that its plant is operated by natural gas and feeds the grid, but that it has also purchased carbon credits to offset the emissions:
“We believe that the worries about Bitcoin's energy use are misplaced. Contrary to popular belief, we believe Bitcoin mining could have a net positive effect on the environment.”
Ark has recently added 259,897 Coinbase shares to its assets through the Ark Innovation ETF and the ARK Next Generation Internet ETF, totaling more than $62 million at today's price of about $241.