Ark Investment Management Allows Fund to Invest in Cryptocurrency ETFs in Canada

• According to a filing with the US Securities and Exchange Commission (SEC) on Friday, Ark Investment Management updated the prospectus for its ARK Next Generation Internet ETF (ARKW) to allow Canadian investors to participate in crypto exchange-traded funds
• The fund may also invest in the Grayscale Bitcoin Trust (GBTC) or other pooled investment vehicles that invest in bitcoin, such as exchange-traded funds domiciled and listed for trading in Canada
• Wood’s desire to establish a bitcoin ETF may pit her against Grayscale Bitcoin Trust GBTC, – 1.74 percent, a closed-end reserve that holds bitcoin and is considered one of the largest crypto reserves

According to a filing with the US Securities and Exchange Commission (SEC) on Friday, Ark Investment Management updated the prospectus for its ARK Next Generation Internet ETF (ARKW) to allow Canadian investors to participate in crypto exchange-traded funds (ETFs). The investment management business established by crypto bull Cathie Wood said that the fund may have indirect exposure to cryptocurrencies, such as bitcoin, through an investment in a grantor trust or other pooled investment vehicles, such as exchange-traded funds domiciled in Canada.

The fund may also invest in the Grayscale Bitcoin Trust (GBTC) or other pooled investment vehicles that invest in bitcoin, such as exchange-traded funds domiciled and listed for trading in Canada (Canadian Bitcoin ETFs), according to the revised document. Bloomberg ETF expert Eric Balchunas claimed in a series of tweets that Ark was trying to replace ARKW’s stake in GBTC with a Canadian ETF. 

GBTC is ARKW’s second-largest position, with approximately 8.5 million shares in the fund. Balchunas pointed out that GBTC is down 22% year to date, while the Canadian ETF is down 6%. He wrote that’s a very large dispersion, and he is sure it irritates them.

Wood’s desire to establish a bitcoin ETF may pit her against Grayscale Bitcoin Trust GBTC, – 1.74 percent, a closed-end reserve that holds bitcoin and is considered one of the largest crypto reserves. 

There have also been plans floating about for Grayscale Trust to eventually convert to an ETF from its current structure. Whatever the case may be, it has not yet applied to do so. Cathie Wood’s ARK Invest is collaborating with 21Shares US LLC, which has filed paperwork with the United States Securities and Exchange Commission to create a bitcoin Exchange Traded Fund (ETF), the most recent asset administrator attempting to capitalize on financial backers’ growing interest in bitcoin.

Ritika Sharma

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.