Grayscale Bitcoin Trust (GBTC) proved to be a standout performer during the second quarter of 2023 at Cathie Wood’s ARK Invest. According to the latest quarterly ETF report published on July 19, GBTC played a crucial role in the success of ARK Next Generation Internet exchange-traded fund (ARKW) in Q2.

During Q2 2023, GBTC emerged as one of the top five contributors to ARKW’s impressive growth of over 9%. Alongside other star performers like Tesla, Shopify, Unity Software, and Draftkings, Grayscale’s digital currency investment product secured a respectable fifth place, accounting for 108 basis points of ARKW’s performance.

ARKW: A Powerhouse ETF

ARKW stands as one of the leading ETFs managed by ARK, boasting year-to-date gains of approximately 50% until June 30. With a focus on internet-based products and services, cloud computing, artificial intelligence, and e-commerce, ARKW had nearly 20% of its assets related to cloud computing and about 19% dedicated to blockchain during Q2.

Exchange Traded Fund (ETF)

GBTC versus Coinbase and Other Top Assets by Allocation

Although GBTC showcased impressive results, it still trailed behind Coinbase in terms of asset allocation within ARKW. Grayscale accounted for just over 7.5% of ARKW’s holdings, comparable to Tesla’s allocation, while Coinbase took the lead with nearly 9% of the fund’s assets.

Among the other significant assets held by ARKW, Jack Dorsey’s crypto-related platform Block secured the fourth spot, making up 7% of the fund’s total assets in Q2. However, unlike GBTC, Block emerged as one of the top five worst performers for ARKW, causing a 30 basis point decline in Q2.

ARK’s Strategic Sales and Bullish Outlook for Coinbase

It’s worth noting that the latest quarterly report by ARK did not include the company’s most recent large sales of Coinbase stock. As Coinbase shares surpassed $90 in mid-July, ARK strategically capitalized on profits, selling nearly one million Coinbase shares, amounting to around $97 million.

Despite the stock sale, ARK’s CEO Cathie Wood maintains a bullish stance on Coinbase, primarily due to Ripple’s legal progress in its long-running action with the United States Securities and Exchange Commission. Wood reaffirmed her optimistic view on Bitcoin as well, predicting that it would one day reach $1.5 million per coin.

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