ARK Invests $9.5M in HOOD Shares Following Robinhood's European Venture

ARK Invest, headed by Cathie Wood, made a strategic move by acquiring a significant number of shares in Robinhood (HOOD), a prominent U.S.-based financial services company. This decision came shortly after Robinhood unveiled its plans to expand its operations in Europe.

The ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF) collectively purchased 1,141,046 shares of Robinhood. This acquisition, valued at $9.54 million based on Wednesday's closing price of $8.36, showcases ARK's confidence in the growth potential of the platform.

Robinhood's third-quarter earnings statement on Tuesday revealed the company's intention to launch brokerage operations in the U.K., signaling a strategic move into the European market. The statement also outlined plans for the introduction of crypto trading in the EU following the U.K. launch.

Interestingly, despite Bitcoin's impressive 110% year-to-date surge, this momentum has not translated into increased demand for Robinhood shares. As of Wednesday, the shares were only trading 2.7% higher year-to-date.

In a separate move, the ARK Next Generation Internet ETF (ARKW) divested 48,477 units of GBTC, amounting to approximately $1.34 million. This comes on the heels of a previous sale of 72,509 units of GBTC last month. It's worth noting that GBTC holds the highest weightage of 9.88% in the ETF.

Notably, shares in GBTC have experienced an astounding 235% surge this year, surpassing the performance of both Bitcoin and major U.S. stock market indices by a significant margin, according to data from the TradingView platform. The discount of GBTC relative to the trust's net asset value has also narrowed down to 12.26% from a record high of 48% in December of the previous year. This narrowing suggests optimism regarding the potential approval from the U.S. Securities and Exchange Commission (SEC) for the conversion of the trust into a spot-based ETF. This move could have a substantial impact on the cryptocurrency investment landscape.

Read More: Matrixport's Bold Forecast: Bitcoin Soars to $45K in Imminent Breakout