Ark Investment purchased 639,069 shares of Grayscale Ethereum Trust stock worth approximately $20 million.
ARK Investment has bought 639,069 shares of the Grayscale Ethereum Trust. pic.twitter.com/ofXD5F7QpA
— Documenting Ethereum 🧾 (@DocumentEther) May 18, 2021
In reality, however, neither the purchase price nor the timing is known, so at this time it is not possible to know how much has been invested.
What is known is that these purchases were made in the first quarter of the year, when the price of ETH fluctuated between $750 and $2,000, but given that the current price is significantly higher (around $3,000), Ark Investment’s investment in Grayscale’s Ethereum Trust would currently be at a strong profit.
However, given that the first quarter has now been over for more than a month and a half, it is also possible to imagine that Ark has sold some of its shares in the Grayscale Ethereum Trust in that time, but this has not yet been disclosed.
In fact, after ending the first quarter of the year at $2,000, the price of ETH rose enormously during April, reaching a peak of $4,300 on 12 May, more than double the level of 31 March.
In such a scenario, it is not at all absurd to imagine that Ark may have already capitalized on this investment, perhaps even in part, as Tesla did with bitcoin in March.
In recent months, the price increases of cryptocurrencies have seemed excessive to many, so those who had previously bought them at much lower prices may have been tempted to sell some of them in order to immediately monetize some of the gains.
Ark Investment’s strategy with Ethereum
However, it should also be stressed that Ark Investment’s attitude towards cryptocurrencies reveals a long-term strategy, with investments that are not purely speculative in the short term.
From this point of view, their approach also seems similar to Tesla’s, i.e. to buy at prices they consider convenient, and then to keep the investment over the long term, perhaps selling a small part of it in case of particularly high prices.
We know that Tesla sold 10% of their BTC, because this sale took place before the end of the quarter, and ended up being reported in the documentation of the quarter itself, made public in April. As far as Ark is concerned, the price of ETH peaked between April and the beginning of May, so if any sales were made during this period, they would obviously not yet be reported in the quarterly reports.