Cathie Wood's ARK Invest buys the dip in bitcoin amid a volatile 50% sell-off

• A more than 50% decline in bitcoin hasn't stopped Ark Invest's Cathie Wood from buying the dip in the cryptocurrency.
• Ark Invest's Next Generation Internet ETF has purchased 697,996 shares of the Grayscale Bitcoin Trust over the past two days.
• Wood is sticking by her long-term $500,000 price target for bitcoin and believes the recent environmental concerns surrounding they cryptocurrency are "misguided."
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Cathie Wood's Ark Invest is buying the dip in bitcoin, according to the firm's daily trade report that summarizes trades made in its family of ETFs.

The ARK Next Generation Internet ETF purchased 516,001 shares of the Grayscale Bitcoin Trust on Monday, worth about $17 million based on the fund's closing price on Monday. The ETF purchased an additional 181,995 shares on Tuesday, worth about $5.7 million based on the fund's Tuesday closing price.

Ark Invest's $22 million purchase in the bitcoin fund comes after the cryptocurrency sold off more than 50% from its record-high over the past two weeks. The volatility in bitcoin was in part driven by Tesla CEO Elon Musk's concerns about the environmental impact of bitcoin mining, but Ark Invest has called those concerns "misguided."

The volatility in bitcoin accelerated further after China reiterated its ban against the cryptocurrency for banks and other financial institutions, as well as warning against mining and trading it.

But Wood remains bullish on bitcoin, and is sticking by her long-term price target of $500,000. That price target is driven by expectations that institutional investors will continue to allocate a portion of their portfolios to bitcoin over time, which would spark demand for the cryptocurrency and help drive up the price.

The Grayscale Bitcoin Trust is the sixth largest holding of the Ark Next Generation Internet ETF, with 7.6 million shares worth about $240 million as of Tuesday's close, according to fund holdings data from ARK Invest.

Bitcoin is up about 30% since it hit a low of $30,066 on May 19.