ARK Investment Management increased its stake in Tesla (TSLA) a few weeks after the electric-vehicle maker unveiled a $1.5 billion investment in bitcoin.
ARK’s flagship ARK Innovation ETF (ARKK) bought 89,447 Tesla shares on Wednesday, representing about 0.25% of the fund. Tesla is already the top holding in the ETF.
ARK Innovation at last check was down about 1.6% to $149.76. Shares of the Palo Alto, Calif., automaker were off 1.4% at $787.25.
ARK Autonomous Technology & Robotics ETF and ARK Next Generation Internet ETF also bought shares.
ARK's chief executive and chief investment officer, Cathie Wood, is known for predicting in 2018 that Tesla would hit $4,000 in five years.
ARK's suite of actively managed exchange-traded funds grew its fortunes more than fivefold from March 2020 through the end of last year.
Earlier this month, Tesla said in a Securities and Exchange Commission filing that it had purchased $1.5 billion of bitcoin.
In the filing Tesla said "we expect to begin accepting bitcoin as a form of payment for our products in the near future."
Wedbush Securities said in a note on Monday that Tesla's investment was a "game-changer" for the cryptocurrency and that it could pave the way for more corporate ownership and adoption.
Wood said Wednesday in an interview with CNBC that widespread corporate adoption of bitcoin will take time. She added that she was surprised at the way interest has grown.
"I don't think we ever thought there would be a broad-based substitution of bitcoin for cash on corporate balance sheets," Wood said. "We find that very interesting."
Wedbush analyst Daniel Ives said that competition in the electric vehicle space is heating up.
"We believe the traditional auto stalwarts General Motors (GM) and Ford (F) , followed by Volkswagen’s VWAGY QuantumScape (QS) news, shows that the EV party has some more guests coming," Ives said, according to Bloomberg.