Despite a sharp price decline and FTX’s collapse, Cathie Wood’s investment fund Ark Invest is sticking with cryptocurrencies. On Monday, the Grayscale Bitcoin Trust’s 315,259 shares were purchased by the Ark Next Generation ETF. The latter presently accounts for 4.6% of the assets in the Ark fund.
Since there is no pure bitcoin ETF, Grayscale’s product is thought of as a stand-in for exposure to the most well-known cryptocurrency. The fund is currently trading for far less than the worth of the bitcoin it owns, while its price has dropped over 80% in the last year.
Since the collapse of FTX, one of the most recognized crypto exchanges, the cryptocurrency market has been in disarray. After competitor Binance withdrew out of a prospective rescue package, the firm declared bankruptcy last week. CEO Sam Bankman-Fried resigned amid claims that FTX had abandoned the hedge fund Alameda Research, which was affiliated with the company. negotiating customer money.
The fact that the bitcoin blockchain remained to function throughout the FTX issue was one of “many good aspects,” according to ARK, who claimed that it will advance the industry.
“ARK’s belief in the long-term promise of public blockchains across currency, finance and the internet does not waver. As the crypto-asset market may work under pressure from sell-offs and liquidity shortages in the short term, we believe this crisis is purging the bad actors and will improve the health of the crypto ecosystem with more transparency and decentralization in the longer term.”