ARK Invest has invested a substantial $15.9 million in its recently-listed spot Bitcoin exchange-traded fund (ETF), ARK 21Shares Bitcoin ETF (ARKB). In a parallel move, the firm has sold $15.8 million worth of shares in the ProShares Bitcoin Strategy ETF (BITO).
According to Coindesk, ARK Invest demonstrated its commitment to its Bitcoin-related endeavors by acquiring 365,427 shares of the ARK 21Shares Bitcoin ETF (ARKB). This significant purchase was made within the framework of ARK’s Next Generation Internet ETF (ARKW).
ARK Invest Shifts from GBTC to BITO
ARK Invest, led by renowned investor Cathie Wood, shifted from its holdings in the Grayscale Bitcoin Trust (GBTC) in December, opting for BITO shares in anticipation of the conversion of GBTC into a Bitcoin ETF. Cathie Wood emphasized the security of an already approved fund over one awaiting approval, anticipating further regulatory green lights.
With the approval of spot Bitcoin ETFs in the U.S., industry experts anticipate ARK to exchange some of its BITO shares for a spot Bitcoin ETF. The move underscores ARK’s proactive approach to aligning its investment portfolio with the evolving landscape of cryptocurrency and ETF markets.
Recently, BlackRock and Ark Investment Management reduced their fees for spot Bitcoin ETFs ahead of the funds’ approval. This reduction in fees was initiated by BlackRock’s iShares Bitcoin Trust and Ark 21Shares Bitcoin ETF.
Gearing Up for Spot Bitcoin ETFs
BlackRock’s iShares Bitcoin Trust lowered its fees from 0.30% to 0.25%. Ark 21Shares Bitcoin ETF followed suit, reducing its fees to 0.21%, down from the initially proposed 0.25%. The reduction in fees followed a misleading announcement on the SEC’s social media ahead of the official approval of the spot Bitcoin ETFs.
The fee cuts from both BlackRock and Ark signaled a heightened sense of urgency to capture a substantial share of the capital inflow expected from these spot Bitcoin ETFs. This decision could significantly impact the crypto landscape, allowing institutional and retail investors to access Bitcoin without direct ownership.
This article was written by Jared Kirui at www.financemagnates.com.CryptoCurrencyRead More
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