Ark Investment Management – the investment firm owned by notorious Bitcoin-bull Cathie Wood – is now allowing one of its funds to invest in Canada’s Bitcoin ETFs, creating more opportunity for BTC exposure.
Ark Invest and Bitcoin
The news was revealed in a Friday filing for the ARK Next Generation Internet ETF (aka ARKW) worth 5.7 billion dollars, according to BNN Bloomberg.
The firm apparently adjusted its prospectus, and now includes mention of using “exchange-traded funds domiciled in Canada” in order to gain exposure to Bitcoin. However, an ARK spokesperson has yet to respond to a request for comment on these changes.
This is not the first time ARK has exposed itself to Bitcoin. Three of ARK’s funds bought over 1 million cumulative shares of the cryptocurrency exchange Coinbase back in April.
Furthermore, as Bitcoin hit one of its deepest annual lows in July, ARK Invest effectively bought the dip, purchasing over 450 000 shares of the Grayscale Bitcoin Trust (GBTC) within just two days. This equated to over 13 million dollars worth of stock at the time. By Bloomberg’s analysis, the GBTC investment accounts for about 5.5% of the ARKW fund.
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The most recent development could be a relative boon for ARKW, delivering better results than they’ve seen with Grayscale. Since the launch of the Purpose Bitcoin ETF (BTCC, the first Bitcoin ETF in Canada) in February, the fund has only been down 9%, whereas Grayscale has been down 20% since that time. The Purpose Bitcoin ETF has consistently outperformed Grayscale on the year.
When Will the US Get a Bitcoin ETF?
While Canada has options such as Purpose Bitcoin and 3iq, the United States is yet to approve a Bitcoin ETF. The SEC has collected a hefty backlog of applications from companies wishing to begin such a fund but remains cautious and strict on the matter. ARK invest is one such company, having teamed up with Switzerland’s 21SharesAG to file plans for a US ETF.
There may be hope in sight for the US – though not in the form investors expected. SEC Gary Gensler has recently shown openness to a Bitcoin ETF – but one that focuses exclusively on Bitcoin futures contracts.
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