Ark Invest fund to allow participation in Canadian ETF. Asset manager ARK Invest has made changes to the issue prospectus of the ARK Next Generation Internet ETF (ARKW). The structure invests in Canadian exchange-traded funds (ETFs) based on cryptocurrencies.
“The fund may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust or in other pooled investment vehicles. For example, exchange-traded funds domiciled in Canada,” the document says.
The company noted that its fund can also invest in shares of Grayscale Bitcoin Trust (GBTC). ARKW is one of the largest holders of these securities. Thus, the structure owns about 8.5 million shares of GBTC with a total value of $ 319 million. Moreover, this instrument accounts for 5.57% of its portfolio.
Pretty significant dispersion
Bloomberg ETF analyst Eric Balchunas suggested that ARK Invest is trying to replace BTC shares with shares of one of the Canadian ETFs. According to him, since February 2021, the GBP quotes have fallen by 22%. Furthermore, over the same period, the securities of the Canadian fund managed by Purpose Investments fell by 6.46%.
“That’s pretty significant dispersion. I’m sure that’s irking them,” the analyst noted.
In Balchunas’s opinion, Cathie Wood‘s company will keep funds in shares of Canadian ETFs even after the SEC approves futures funds based on cryptocurrencies. He explained that such tools will not be able to surpass structures with physical support.
Prediction of the approval
Recall that Bloomberg experts predicted the approval of the bitcoin ETF by the US regulator by the end of October 2021.
Experts made this conclusion after the withdrawal of VanEck and ProShares applications. They were in favor of launching a similar Ethereum-based tool two days after sending it.
In the decision of the management companies, the experts saw signs of constant interaction with the regulator. They noted an increased probability of eliminating all existing shortcomings for launching the product after the 75 days stipulated by the rules.