In Brief:
- ARK invest tweaked the prospectus of the $5.7 billion ARK next-generation Internet ETF.
- The fund will be able to hold cryptocurrencies via “exchange-traded funds domiciled in Canada.
Cathie Wood, CEO of Ark Investment Management is allocating a fund to invest in Canadian Bitcoin ETFs as she wants to give exposure to digital assets.
Ark filed for the $5.7 billion ARK Next Generation Internet ETF (Ticker ARKW) with the Securities and Exchange Commission (SEC), So the fund can hold cryptocurrencies via “exchange-traded funds domiciled in Canada.”
It is known that in the last 8 years, The SEC has rejected or delayed so many applications regarding a Bitcoin ETF, which makes it elusive for Wood and other investors. The known reason behind this application rejection is the potential risks of market manipulation. Before this filing, ARK had also teamed up with 21Shares in June to file for the Bitcoin ETF.
Canada and Europe have allowed fund managers to offer cryptocurrencies as an ETF. In the current year, the Ontario Securities Commission had approved the Bitcoin and Ethereum holding.
Ark’s next-generation Internet ETF has already invested a large amount in Bitcoin through the Grayscale Bitcoin Trust (GBTC). Grayscale Trust is considered the best alternative in the absence of the U.S. Bitcoin ETF. Wood’s is holding 5.5% of its total assets in the Grayscale Fund, which is the second most holding after Tesla.
