After overcoming the subprime mortgage disaster, Michael Burry now turns his attention to the flagship invention of ETF ARK from Bitcoin Bull Cathie Wood, which funds companies like Square, GBTC and Tesla.
The “Big Short Movie” protagonist Michael Burry temporarily takes a stand against ARK, Cathie Wood’s ETF innovation.
As indicated in the 13 releases in the second quarter, Michael Burry’s mutual fund “Scion Asset Management” bought up to $ 31 million bearish put options against the 235,000 ETF shares. The best way to take advantage of a decline in the value of a fund or its stock is with a “PUT” option.
ARK’s largest fund, Innovation ETF, has $ 22.62 billion in assets. Its purpose is to fund various problematic tech companies like Coinbase, Square, Grayscale Bitcoin Trust, and Tesla. According to the 13 filings in the second quarter, companies other than Bury have also reduced ARK’s flagship funds.
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For example, Laurion holds put options of up to $ 171 million against the 1.3 million shares of Cormorant Asset Management, Moore Capital Management and the extensive bearish positions of Golden Tree Asset Management.
Cathie Wood seems to be enjoying this challenge, however, according to her Twitter post.
“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. “
Cathie Wood on cryptocurrencies
Cathie Wood is a firm believer in Bitcoin and other cryptocurrencies. For this reason, ARK has become a partner of the 21 Swiss-based shares. She intends to create an EFT bitcoin.
Additionally, ARK Invest made over 450,000 GBTC shares in one month with two separate purchases. Also, ARK bought another $ 110 million share of Coinbase in April, and some of the shares are for Innovation ETF.
Burry is now a bitcoin and crypto magnet. He warned of an “unmanageable valuation” within the market in the following months.
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In June, Burry also warned that investing in meme stocks and cryptocurrencies could lure private investors into “the greatest of all other crashes.” He was showing off.
“What the speculation / hype will do is lure retailers into a terrible crash. By the time meme stocks plummet from their tens of billions and crypto from their trillions, # MainStreet losses can reach the breadth of countries ”.
Burry became famous after referring to the real estate market collapse during the “Global Financial Crisis”.
He also made enormous profits from the mortgage crisis. In addition, Burry is best known for “The Big Short,” a book by Michael Lewis that won an Oscar for its film.
Selected image from Pixabay