Slowly but surely, the financial world is warming up to the idea of both Bitcoin and blockchain technology. While the latter category is an area of expertise being explored by banks and other financial institutions around the world, Bitcoin is making its way to OTC markets. But that is not all, as ARK became the first public fund manager to invest in Bitcoin just recently.
ARK Web First ETF To Invest in Bitcoin
Investing in Bitcoin as an ETF is not as straightforward as some people might think. An ETF can not, unlike individual Bitcoin traders, purchase virtual currency directly and call it an investment. ARK Web purchased publicly traded shares of Grayscale’s Bitcoin Investment Trust (ticker OTCQX: GBTC) to make their virtual currency investment.
Such an investment would not take place if ARK did not see the value and potential of Bitcoin, both as a currency and a technology. According to ARK, Bitcoin has the tools required to disrupt the US$500 billion intermediary payment platform industry, which has seen little to no innovation in the past decade.
Unlike credit and debit cards, as well as the remittance business model, Bitcoin offers far more flexibility, convenience, and lower fees. With so many major companies accepting Bitcoin, including Expedia, Dell and Overstock.com, there is no better time than now to get involved or invested in Bitcoin as an ETF.
“We’re believers in Bitcoin, the currency, and Bitcoin, the technology platform. We also believe that current prices present an attractive entry point for our investors. Bitcoin is a disruptive innovation and while still in its infancy, interest has been growing rapidly in Silicon Valley, Wall Street and Washington, D.C.” – ARK Founder and CIO Cathie Wood told DigitalMoneyTimes.
This is not the first investment in disruptive technologies or ideas made by ARK Web, as the ETF specialises in exploring the “niche markets” in this regard. Thanks to internet usage around the world, and the uprise of mobile technology, disruptive technological innovations could very well shape the future for all of humanity.
ARK Web created a major milestone for itself, as this became the first US exchange-based ETF to invest in Bitcoin. Every day, the value of the publicly traded Bitcoin Investment Trust shares will be evaluated at 4 PM [exchange time] at the current daily market price at that time.
Grayscale’s Bitcoin Investment Trust A Favorite Choice
Some of you may have heard of Grayscale’s Bitcoin Investment Trust, as this is a wholly-owned subsidiary of Digital Currency Group. By providing unprecedented market insights and investment exposure to the developing digital currency asset class, Grayscale has made quite the name for itself over the past few months.
“Grayscale is a leader in the bitcoin ecosystem, bridging the gap between digital currency and the broader investment community. Our investment philosophy is to invest in innovative companies, and we’re glad to be making our own innovative mark within the ETF community.” – ARK COO Jane Kanter told DigitalMoneyTimes.
What makes the Bitcoin Investment Trust so appealing to other investors is that these shares are the first publicly quoted securities solely invested in and deriving value from the Bitcoin price. Bitcoin has been facing a lot of scrutiny for its volatile price, but that is one part of virtual currency attracting attention from the traditional financial world.
“We’re excited to receive an investment into the Bitcoin Investment Trust from an innovative firm like ARK. ARK, a pioneer in the investment community, is in good company. Recent news has highlighted Goldman Sachs, UBS and Citi for their initiatives in the digital currency space.” – Grayscale Founder Barry Silbert concluded.
Source: OTC Markets
Images courtesy of ARK, Bitcoin Investment Trust, Shutterstock