Ark Invest is a renowned investment management firm founded by Cathie Wood in 2014. The company specializes in investing in disruptive technologies and innovations, including blockchain and digital assets like Bitcoin. Ark Invest has been one of the most prominent firms to invest in Bitcoin, with their flagship ETF, ARK Innovation ETF (ARKK), holding over $2 billion worth of Bitcoin as of 2021.
So, how does Ark Invest invest in Bitcoin?
Firstly, Ark Invest has a dedicated team of analysts and researchers who are constantly monitoring the cryptocurrency market and analyzing trends to identify potential investments. The team also tracks regulatory developments, market sentiment, and other factors to make informed investment decisions.
Ark Invest’s Bitcoin investment strategy involves investing in Bitcoin directly through Grayscale Bitcoin Trust (GBTC), a publicly traded investment product that holds Bitcoin. GBTC is a trust that holds Bitcoin and allows investors to invest in Bitcoin without having to buy and store the cryptocurrency themselves. Ark Invest has been one of the largest investors in GBTC and currently holds over 8 million shares.
In addition to investing in GBTC, Ark Invest has also invested in companies that are involved in Bitcoin and blockchain technology. For example, they have invested in companies like Square, which allows users to buy and sell Bitcoin through their Cash App, and MicroStrategy, which has invested heavily in Bitcoin as a reserve asset.
Ark Invest’s approach to investing in Bitcoin is based on their belief that Bitcoin is a disruptive technology that has the potential to transform the financial industry. They see Bitcoin as a store of value and a hedge against inflation, as well as a means of payment and a tool for financial inclusion.
One of the key advantages of investing in Bitcoin through GBTC is that it allows investors to gain exposure to Bitcoin without having to worry about the technical aspects of buying and storing the cryptocurrency themselves. GBTC is also traded on major stock exchanges, making it more accessible to traditional investors.
However, it’s worth noting that investing in Bitcoin is still considered a high-risk investment, and its price can be volatile. As a result, Ark Invest has advised investors to allocate only a small percentage of their portfolio to Bitcoin, typically around 2-3%.
In conclusion, Ark Invest’s investment strategy for Bitcoin involves investing in GBTC and companies involved in Bitcoin and blockchain technology. Their approach is based on their belief in the disruptive potential of Bitcoin and its role as a store of value and hedge against inflation. However, investing in Bitcoin is still considered high-risk, and investors should do their own research and consult with a financial advisor before making any investment decisions.