Grayscale BTC Trust Dominates ARK’s Q2 2023 ETF Rankings, Coinbase Tops in Asset Allocation

Cathie Wood’s ARK Invest revealed some interesting details on its portfolio in the second quarter of 2023. The latest report suggested that Grayscale Bitcoin Trust (GBTC) stood out as one of the top-performing assets within the investment firm’s portfolio.

However, when it comes to asset allocation, GBTC trailed behind Coinbase at ARKW.

GBTC Tops Chart

Grayscale Bitcoin Trust (GBTC) played a crucial role as one of the top five contributors driving ARKW’s impressive growth of over 9%. Alongside other performers such as Tesla, Shopify, Unity Software, and DraftKings, GBTC secured the fifth position in this ranking.

Within ARKW’s portfolio, the trust accounted for 108 basis points, whereas Tesla, as the leading asset, represented 232 basis points, according to ARK’s latest quarterly ETF report.

ARKW has depicted impressive year-to-date gains of nearly 50%. In the second quarter, the leading ETF allocated roughly 20% of its assets to cloud computing and around 19% to blockchain as part of its strategy to capitalize on internet-based products and services, cloud computing, artificial intelligence, and e-commerce sectors.

Besides, the GBTC has been trading at an increasingly widening discount to the value of the Bitcoin it holds for over two years. However, the discount has narrowed significantly in recent weeks, which, in turn, has rewarded investors. Such a trend could potentially signal increasing confidence in the trust or rising demand for shares.

Top Assets by Allocation

Coinbase emerged as the biggest allocated asset, amassing weightage of 8.7%. Trailing behind is Tesla accounting for 7.6%, and GBTC, with 7.4% in the second and third positions, respectively. Jack Dorsey-backed platform Block made it to the fourth position with 7%.

The quarterly report, however, does not include the July sales of Coinbase shares. Cathie Wood’s investment firm had accumulated a significant chunk of COIN during the bear market. As the price of COIN hit a yearly high, ARK resorted to offloading some of the shares to rake in profit. Over the last two weeks, the investment fund led by the Bitcoin Bull has sold over $88 million worth of COIN shares in tranches.

Despite the sales, ARK’s CEO Wood reiterated a bullish on Coinbase.