Ark Invest, the investment company founded by Cathie Wood, yesterday applied for approval to offer a Bitcoin ETF. 21Shares, an investment firm with experience launching related products in Europe, will assist Ark in launching the product. Ark Invest is the latest of several funds to show interest in launching a Bitcoin ETF this year.
Cathie Woods Ark Invest is jumping on the Bitcoin ETF train
Ark Invest, the famous wealth management firm, filed for approval to launch a Bitcoin ETF yesterday. Founded and led by Cathie Wood, the company will partner with 21Shares, a company experienced in the field. The proposed instrument will be called ARK 21Shares Bitcoin ETF. It tracks Bitcoin’s performance and price, and provides exposure to regulated markets.
While the price of Bitcoin stagnated last month, technology and crypto-oriented funds expect demand to pick up again. Cathie Wood is a big believer in Bitcoin and much of Ark’s holdings are based on cryptocurrency companies like Coinbase and also on Bitcoin itself.
Wood predicted that the price of Bitcoin could reach $ 500,000 due to its inherent properties, while it could take some time due to the emotional nature of the market. In any case, she sees the future prospects of Bitcoin very positively.
The race has started
Ark Invest is the latest of several companies to submit proposals for a Bitcoin ETF just last year. Driven and inspired to pursue an ETF offering by the surge in the bull market, companies such as Galaxy Digital, VanEck, Fidelity, SkyBridge Capital, NYDIG, WisdomTree Investments, and BitWise have been. However, the SEC has not approved any of these proposals and some are already being postponed.
Gary Gensler, the new chairman of the SEC, made it clear that the cryptocurrency sector needs more regulation. He previously said about cryptocurrencies:
This is a fairly volatile, one could say very volatile, asset class, and the investing public would benefit from more investor protection on the crypto exchanges
With this in mind, experts consider the possibility of having a Bitcoin ETF this year to be very slim. All of the issues the SEC raised regarding Bitcoin are still there. There are still claims to price volatility and market manipulation. But money managers are still trying to grab the chance to be the first to offer such a product in America. And now Ark Invest has joined the race.
What do you think of Ark Invest’s Bitcoin ETF filing? Let us know in the comments section below.
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