ARK Invest Makes a Major Bitcoin Buy: Increasing Holdings by $80 Million

Event Background and Key Data

In March 2025, renowned U.S. investment firm ARK Invest announced that it had increased its Bitcoin holdings by $80 million, bringing its total Bitcoin position to over 62,000 coins, making it one of the top ten institutional Bitcoin holders in the world. This buy occurred when Bitcoin’s price had retraced to around $81,000, with ARK purchasing simultaneously through its managed ETF and spot market, demonstrating its long-term confidence in crypto assets.

This move aligns closely with ARK Invest’s previously released “Big Ideas 2025” report, which forecasts Bitcoin prices by 2030 under bear, neutral, and bull market scenarios at $300,000, $710,000, and $1.5 million respectively, and anticipates that institutional holdings will rise from the current 4.3% of Bitcoin’s circulating supply to over 25%. ARK’s increased position is not only an execution of its forecast but also a strategic response to the structural changes in the crypto market.

Institutional Strategic Logic: Compliance and Asset Diversification

ARK Invest’s Bitcoin allocation strategy is built on three core principles:

1. Compliance-Oriented Layout: ARK holds Bitcoin through a spot Bitcoin ETF (such as the ARK 21Shares Bitcoin ETF) and employs a “cash creation + cold storage custody” model to meet SEC regulatory requirements. In the ETF scheme in collaboration with 21Shares, the custodian stores Bitcoin in physically isolated cold wallets and regularly publishes reserve proofs, significantly reducing regulatory risk.
2. Inflation Hedge: Amid global inflationary pressures and a depreciating dollar, Bitcoin’s scarcity (capped at 21 million coins) makes it an effective tool for institutions to hedge against fiat currency devaluation. ARK’s research shows that the correlation between Bitcoin and the S&P 500 index has dropped from 0.65 in 2023 to 0.32 in 2025, highlighting its diversification value.
3. Technological Upgrade Expectation: Upgrades to the Bitcoin network, such as Taproot and an expansion of the Lightning Network (with a processing speed of up to 5 million transactions per second), enhance its feasibility as a payment instrument. ARK believes that Bitcoin is evolving from “digital gold” to a “global settlement layer,” attracting more enterprise-level applications.

Market Impact and Industry Trends

ARK’s increased holding has sent several market signals:

• Institutional Capital Inflow: In Q1 2025, cumulative inflows into Bitcoin ETFs surpassed $58 billion, with leading products like BlackRock’s IBIT and ARKB accounting for 75% of that share. Institutional capital has helped boost Bitcoin’s market capitalization share to 52%, a new high since 2021.
• Increasing Liquidity Segmentation: The liquidity gap between top assets (Bitcoin and Ethereum) and smaller market cap tokens continues to widen. Data shows that Bitcoin’s daily trading volume reaches $32 billion, while tokens ranked outside the top 50 account for less than 3% of trading volume.
• Enhanced Regulatory Coordination: Approvals of spot ETFs by the U.S. SEC and the implementation of the EU MiCA framework have cleared regulatory hurdles for institutional crypto asset allocation. ARK’s buying scheme has passed the SEC’s “regulatory sandbox” tests and may set an industry standard.

Investor Strategy Implications

For retail investors, ARK’s case offers three key takeaways:

1. Allocation Ratio: High-risk investors might allocate 5%-10% of their portfolio to Bitcoin, while average investors are advised to limit exposure to 1%-3%, employing a dollar-cost averaging strategy to mitigate volatility.
2. Tool Selection: Prioritize compliant spot ETFs or custody solutions, such as the ARKB ETF (with a management fee of 0.21%) or institutional custody services from compliant exchanges like JuCoin, to avoid operational risks associated with direct ownership.
3. Cycle Management: Monitor Bitcoin’s halving cycle (the next expected in 2028) and macroeconomic indicators (such as Fed interest rate decisions). Historical data suggests that prices typically peak 12-18 months after halving.

ARK Invest’s increased holding is not merely a capital maneuver but a landmark event signaling crypto assets’ transition from the fringe to the mainstream. In an environment where institutionalization, regulatory compliance, and technological innovation resonate, Bitcoin’s narrative is evolving from “digital gold” to an “institutional reserve asset,” offering global investors a new paradigm to combat uncertain economic conditions.