Cathie Wood's ARK Invest files to create a bitcoin ETF
Cathie Wood’s ARK Invest files to create a bitcoin ETF
Piper Sandler sees more big gains ahead for this regional bank adopting crypto
“The market value of bitcoin is not related to any specific company, government or asset. The valuation of bitcoin depends on future expectations for the value of the Bitcoin network, the number of bitcoin transactions, and the overall usage of bitcoin as an asset. This means that a significant amount of the value of bitcoin is speculative, which could lead to increased volatility. Investors could experience significant gains, losses and/or volatility in the Trust’s holdings, depending on the valuation of bitcoin,” the S1 filing stated.
The SEC last week again postponed a decision to approve the first bitcoin ETF. The latest action comes as SEC Chairman Gary Gensler has called for more regulation of cryptocurrency exchanges and greater investor protections.
So far, there have been eight other bitcoin ETFs filed with the SEC.
Coinbase, the world’s largest cryptocurrency exchange, is a top 10 holding in Wood’s flagship fund Ark Innovation . Grayscale Bitcoin Trust is a top 10 holding in Ark Next Generation Internet ETF .
Wood has said she sees a future where bitcoin is part of a balanced investment portfolio . Ark Invest estimates that if 1% of the corporate cash of every company in the S&P 500 were converted into bitcoin, then the asset’s price would balloon by more than $40,000 from its current levels. If the cash level increased to 10% from each company in the broader stock index, bitcoin’s price would increase by more than $400,000, the firm said.
With Gensler — a longtime financier who taught a digital currency class at the Massachusetts Institute of Technology — being nominated to lead the Securities and Exchange Commission, the watchdog could warm to crypto during the Biden administration, Wood told CNBC earlier this year .
Wood’s disruptive innovation funds have recently turned a corner after months of underperformance amid a rotation into value stocks. Shares of Ark Innovation are up more than 16% in June.
— CNBC’s Tanaya Macheel and Yun Li contributed to this report. Also on CNBC