When it comes to being a Bitcoin bull, Cathie Wood of Ark Invests goes all out.
Ark Invest has applied for a Bitcoin ETF that tracks BTC futures, according to a recent SEC filing. The SEC has expressed interest in approving such a derivative product rather than directly tracking the underlying asset, which is actual Bitcoin.
According to a filing with the Securities and Exchange Commission (SEC) on Wednesday, the ARK 21Shares Bitcoin Futures Strategy ETF, which trades under the ticker name ARKA, intends to invest in bitcoin futures trading on commodities exchanges.
This is usually the case with the Chicago Mercantile Group’s Bitcoin futures (CMG). Alpha Architect, a white-label ETF provider, filed the application on ARK’s behalf. Bloomberg Intelligence’s Eric Balchunas commented on the development, alluding to the Grayscale Bitcoin Trust:
“It’s a no brainer for Ark because they will likely be able to instantly seed it with about half a billion that they currently have in GBTC. Having that kind of start is really helpful, especially if they are the seventh or eighth one approved. Ark also has a strong base of younger investors who probably would use this as well. Closest thing to a surefire hit as you’ll see.”
Cathie Wood is one of Bitcoin’s most zealous advocates, believing that the world’s largest cryptocurrency may provide multi-fold profits in the years ahead. Wood recently projected that the price of Bitcoin will increase by roughly tenfold to half a million dollars in the next five years.
BTC is now trading 3% higher than $58,000, with a market capitalization of $1.095 trillion as of press time. During the June-July 2021 Bitcoin drops, Cathie Wood’s Ark Invest made strong purchases.
Furthermore, rather of waiting for a Bitcoin ETF to be approved in the United States, Ark Invest has started investing in similar products provided in other countries. The firm revealed its participation in the Canadian Bitcoin ETF last month.