Cathie Woods ARK turns to Canadian Bitcoin ETFs because the SEC delays filings within the US


A new addendum filed with the U.S. Securities and Exchange Commission (SEC) shows that Cathie Wood’s ARK Investment Management has given itself approval to buy Canadian Bitcoin Exchange Traded Funds (ETFs). The company’s ARK Next Generation Internet ETF, which previously could only get exposure to bitcoin by investing in a grantor trust, has updated its prospectus to allow the fund to invest in bitcoin ETFs in the north.

The move comes amid several delays and rejections of similar products in the US by the SEC, which likely prompted ARK to look for alternatives overseas. After filing the addendum with the SEC, the ARK Next Generation Internet ETF now has another option to get an indirect bitcoin exposure. In addition to the Grayscale Bitcoin Trust (GBTC), the fund can now invest in “other pooled investment vehicles such as exchange-traded funds domiciled in Canada”.

GBTC currently represents the Fund’s second largest asset allocation with 8,524,285 stocks held – a weighting of 5.52% valued at over $ 313 million. With the recently filed addition, ARK may want to endure greater Bitcoin exposure through avenues with greater liquidity, less cost, and without the rewards of GBTC. In either case, the next generation internet ETF will still not hold Bitcoin directly.

The move is in the midst of a long waiting list piling up at the SEC’s desk. Grayscale itself was awaiting regulatory approval to convert GBTC into an ETF, plans the company announced in April. Other companies that have applied for a Bitcoin ETF listing in the US include Valkyrie, NYDIG, VanEck, SkyBridge Capital, Global X, and Fidelity. But the SEC has not taken any steps this year to bring the Bitcoin ETF to life in the United States, despite the positive outlook from experts.

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us