Ark Investment Management has revised the prospectus of its Next Generation Internet ETF (ARKW) and plans to invest in cryptocurrency exchange-traded funds in Canada.
According to an updated filing filed by Ark Investment Management with the US Securities and Exchange Commission (SEC), the company is considering investing in Canadian exchange-traded funds (ETFs) for cryptocurrencies. Recall that in February, the Canadian regulator registered the first Bitcoin ETF, and since then, several exchange-traded funds for BTC and ETH have been launched in the country.
“The fund may gain access to cryptocurrencies, such as bitcoin, indirectly through investments in a grantor trust or other pooled investment vehicles, such as Canadian registered ETFs,” said Ark Investment in an updated filing with the SEC.
The document also notes that the fund may invest in the Grayscale Bitcoin Trust (GBTC) or “other pooled investment vehicles that invest in BTC, such as ETFs registered to trade in Canada.”
Bloomberg Senior ETF Strategist Eric Balchunas expressed assumptions about the new initiative of the company. According to him, Ark Investment can transfer all investments of the ARKW fund from GBTC to Canadian ETFs. ARKW owns over 8.5 million shares in GBTC, making it the second largest shareholder in Grayscale.
Balchunas notedthat the GBTC is down 22% YTD, while the Canadian ETF under the ticker BLOK is down 6%. “This is quite a wide spread,” he wrote. “I’m sure it didn’t escape their [Ark Investment Management] attention “.
Balchunas recently suggested that Bitcoin futures ETFs will be launched by the end of the year.
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