While last week’s price dump dampened the bullish rally that bitcoin and other cryptocurrencies were having en route to their all-time highs, it provided investors an opportunity to accumulate a sizable amount of the digital asset to include on their balance sheets.
Ark Investment Management is among those investors, as in its filing with the U.S. Securities and Exchange Commission, the asset management company led by Cathie Wood revealed spending close to $20 million to purchase bitcoin.
The specific date of the buy was not made public, but the move reaffirms the sentiment exhibited by the Ark Investment figurehead while the digital currency and the rest of the pack were taking a severe beating.
Staying true to sentiment
As bitcoin nosedived from its April 14 all-time high of almost $65,000, Woods was among those investors who offered comforting words to the crypto community, putting a positive spin on the lamentable situation that plagued the market for days.
The Ark Investment leader said while prices are down, there’s a chance for capitulation and therefore an opportunity to buy. She stood firm in saying whatever the asset is, a period of capitulation is the perfect time to make a sizeable purchase.
As it appears, her company did just that, taking advantage of the low prices of bitcoin that even reached below the $30K mark before recovering to trade at $39,263 at press time, based on CoinGecko’s figures.
A potential trend for institutions
A believer in the value of bitcoin for a long-time now, Wood also recently said the asset’s current market capitalization is “nothing compared to where this will ultimately be.”
Meanwhile, analysts think that Ark Investment’s decision to “buy the dip” could be an indication that other institutions are planning or have already executed the same bitcoin game plan.
After all, recent blockchain data show major investors remain positive about the long-term prospects and the move to accumulate coins or assets during times of dumps.
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