• Ark Investment, a multi-billion dollar exchange-traded fund (ETF), recently purchased 13,243 shares of Tesla Inc. (NASDAQ: TSLA).
• The purchase is part of ARK Holdings’ investment in disruptive technologies, and gives them indirect exposure to Bitcoin due to Tesla’s holdings.
• Tesla shares have risen 16% year-to-date, but have dropped 53% over the past year.
Institutional investors have been eager to gain exposure to cryptocurrency, and ARK Holdings, a multi-billion dollar exchange-traded fund (ETF) has set an example with their recent purchase of 13,243 shares of Tesla Inc. (NASDAQ: TSLA). The purchase is part of ARK Holdings’ investment in disruptive technologies, and gives them an indirect exposure to Bitcoin due to Tesla’s holdings of the cryptocurrency.
Analyzing Tesla’s performance, the company’s shares have risen approximately 16% year-to-date (YTD), however, they have dropped about 53% over the past year. Despite the downturn, Cathie Wood, the CEO of ARK Holdings, remains extremely bullish on the electric vehicle company led by Elon Musk. Following the recent purchase, ARK Holdings now owns approximately 0.13% of Tesla, which represents a significant bet on the future success of the company.
ARK Holdings’ purchase of Tesla is part of a larger movement within the institutional investor community to gain exposure to Bitcoin. Tesla’s holdings of the cryptocurrency have made the company a target for institutional investors, who are looking to get indirect exposure to Bitcoin. As such, the purchase of Tesla shares by ARK Holdings represents an indirect investment in the cryptocurrency.
Looking ahead, it remains to be seen how ARK Holdings’ purchase of Tesla will play out in the long term. With Tesla’s share price still slightly down from its all-time high, many investors will be watching to see if the company will be able to rebound and perform as well as it did prior to the pandemic. In the meantime, ARK Holdings’ purchase of Tesla is a sign that institutional investors are still optimistic about the future of electric vehicles, and are willing to bet big on the success of the company.