A Strategic Change in ARK Invest’s Investment Approach
Under Cathie Wood’s direction, ARK Invest has made a significant shift in its crypto investment strategy. Previously heavily invested in Grayscale Bitcoin Trust (GBTC), ARK has now sold its GBTC shares and invested around $100 million in the ProShares Bitcoin Strategy ETF (BITO). As a result, ARK has become the second-largest holder of BITO, at least for the time being.
Reasons for Choosing BITO
One of the reasons for the shift to BITO is its high liquidity, allowing ARK to make quick decisions based on market changes. This move is also seen as a strategic step towards preparing for the launch of ARK’s own ETFs, the ARK 21Shares Spot Bitcoin ETF (ARKB) and the ARK Next Generation Internet ETF (ARKW), in partnership with 21Shares. The re-application for a spot Bitcoin ETF follows previous challenges with the U.S. Securities and Exchange Commission (SEC), but recent events indicate a possible shift in how the SEC views crypto ETFs.
The Changing Regulatory Landscape
Recent actions by the SEC, including a key ruling about Grayscale, suggest a potential shift in how it views crypto ETFs. This could open up more opportunities for regulated options to invest in digital assets, such as the proposed ARKB. As a result, investors may soon have more options to invest in crypto assets through ETFs.
Hot Take: Adapting to the Evolving Crypto Market
ARK Invest’s decision to shift its investments from GBTC to BITO reflects a strategic move to adapt to the changing market and regulatory environment. By being proactive and responsive to these changes, ARK is positioning itself to take advantage of new opportunities in the crypto space, including the potential launch of its own ETFs.
By
By
By
By
By
By