Among the veteran investors, nobody can point fingers at Cathie Wood for not taking enough risks. After all, her investment firm ARK Invest regular scoops up shares of major crypto companies.
Wood is very bullish on Bitcoin’s future, predicting a $1.5 million price for the king coin.
Now, as the spot exchange-traded funds (ETFs) linked to Bitcoin have received an invigorated response in the wake of Federal Reserve Chair Jerome Powell’s dovish comments on interest rate cuts, Wood didn’t want to be left behind.
Here is what happened.
After the crypto market crashed on the Oct. 10 weekend, spot Bitcoin ETFs saw an outflow of a massive $326.4 million when the market opened on Oct. 13. But Powell’s hint at potential rate cuts invited an inflow of $102.7 million the next day.
The same day, Ark Invest filed with the Securities and Exchange Commission (SEC) to launch three Bitcoin ETFs .
A Bitcoin ETF is a type of investment fund that tracks the price of Bitcoin and is traded on traditional stock exchanges like any other stock.
Each of the proposed ETFs have different strategies aimed at a diversity of prospective investors.
The ARK Bitcoin Yield ETF aims to generate cash flows from BTC exposure. The ARK Defined Income Exposure & Target (DIET) Bitcoin ETFs aim to offer downside protection to investors.
ARK Invest already holds interests in several publicly traded crypto firms like:
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Circle Internet Group (NYSE: CRCL), the stablecoin issuer
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Coinbase Global (Nasdaq: COIN), the largest U.S. crypto exchange
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Robinhood Markets (Nasdaq: HOOD), a leading exchange offering crypto assets and tokenized stocks
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Bitmine Immersion Technologies (Nasdaq: BMNR), the leading Ethereum treasury firm
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Block, Inc. (NYSE: XYZ), Jack Dorsey’s Bitcoin-focused fintech firm
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Bullish (NYSE: BLSH), a prominent crypto exchange