Ark Investment To Invest in Canadian Crypto ETFs, SEC Filing Reveals
Ark Investment Management has revised the prospectus for its ARK Next Generation Internet ETF (ARKW) to open the possibility of investing in crypto exchange-traded funds (ETFs) in Canada, states a filing with the U.S. Securities and Exchange Commission (SEC).
“The fund may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust or in other pooled investment vehicles, such as exchange-traded funds domiciled in Canada.”
The filing further states that the fund may invest in the Grayscale Bitcoin Trust (GBTC) or “other pooled investment vehicles that invest in bitcoin, such as exchange-traded funds that are domiciled and listed for trading in Canada (Canadian Bitcoin ETFs).”
Bloomberg ETF analyst Eric Balchunas speculated that Ark was looking to replace ARKW’s investment in GBTC with a Canadian ETF. ARKW holds over 8.5 million shares of GBTC, making it the second-largest holding in the fund.
Balchunas pointed out that GBTC is down 22% year-to-date, while the Canadian ETF has dropped 6%. “That’s pretty significant dispersion,” he wrote. “I’m sure that’s irking them.”
INTERESTING: ARK just amended the prospectus for $ARKW to say the fund may invest in crypto ETFs in Canada. My guess is they looking to swap out $GBTC, which they own $350m worth for one of the Candian ETFs, which tracks better. $BLOK just did this. pic.twitter.com/fVoiGI4CYH
