From subprime mortgage disaster to ETF ARK, Michael Burry has shifted his focus for the better, (or worse). Many believe that the change of pace from overcoming the mortgage disaster is intriguing for him. After all, ETF ARK is a flagship invention by none other than bitcoin bull Cathie Wood. This invention has been said to fund many big hot-shot firms like GBTC, Tesla, Square, and whatnot. So why would Burry want to turn against ETF ARK? Today, we will focus on the reason why Michael Burry took a dig at the invention by Wood.
A Deep Study of The Incident
Michael Burry is the protagonist famous for the Big Short Movie. The actors have taken a stand against the ARK. It is a creation of Cathie Wood which made its name for being involved with big companies. So where did it go wrong?
A source has revealed that in the 13th release in the second quarter, Burry’s mutual fund puts an option against the ETF shares. To talk about it thoroughly, the mutual fund “Scion Asset Management” managed to bring up to $31 million bearish. It put options against the 235,000 ETF shares. One of the reliable methods to take advantage of the decline in the value of the fund or the stock is to present a PUT option.
Innovation ETF is one of the ARK’s largest funds. It has placed up to 22.62 billion in assets. Its purpose is to give companies like Coinbase, Grayscale Bitcoin Trust, and Square, Tesla money. In other words, it funds the firms. However, according to the 13 fillings in the second quarter, companies like Bury have reduced the funds from the APK flagship.
One of the major things noticed during this time is by Laurion. They hold PUT options of up to $171 million against the 1.3 billion shares of CAM, Moore Capital Management, and Golden Tree Asset Management. Although Cathie Wood is enjoying the challenge and is preparing to rise to the occasion.
Her tweet goes on to show her ideals. She posted,
“It is fair to credit Michael Burry for making a sound decision based on both the fundamentals and the looming crisis in the mortgage/housing market. Unfortunately, Burry doesn’t seem to understand the fundamentals that generate volatile investment and growth opportunities in innovation. “
What is Wood’s Take on Digital Currency?
Cathie Wood believes in the power of Bitcoin and other digital currencies. Hence, she has partnered with 21 Swiss-based shares. She wants to create an EFT bitcoin. Moreover, the ARK Invest have successfully made up to 450,000 GBTC shares in just one month with only two purchases.
Additionally, it also bought $110 million shares of Coinbase in April. The sources have shared that some of them are for Innovation ETF. Her interest in management has led her to become a crypto-magnet. Although between both the actor and the businesswomen, there seems to be a growing rift for the market value.
Ending Note
Michael Burry mentioned many occurrences that may take place in the digital currency market. For example, “the greatest of all other crashes.”, “meme stock plummeting” are some of his premonitions that failed. Let’s see how long the rift between Cathie Wood and him continues.
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