Investment firm ARK Invest is considering investing in Canadian Bitcoin ETFs, as there is no opportunity in the United States yet.
Canada Is Ahead of the US with Bitcoin ETFs
ARK Invest, the asset manager led by Cathie Wood, wants to invest in Bitcoin ETFs and since that is not yet possible in America, the asset manager wants to do that in Canada.
From an amended SECapplication of the ‘ARK Next Generation Internet ETF’, the fund may invest in the Grayscale Bitcoin Trust. In addition, the fund can now also invest in other Bitcon investment instruments. This also includes Canadian Bitcoin ETFs.
A Bitcoin ETF is an investment tool that allows investors to buy stocks that represent the cryptocurrency. However, they can do this without having to hold the underlying asset, nor do they need to store the tokens. Despite US investors’ longing for a Bitcoin ETF, the US Securities and Exchange Commission (SEC) has so far blocked all attempts to launch such an instrument. The SEC thinks there is too much price manipulation in the crypto market.
Canada, on the other hand, is one of the few countries where Bitcoin ETFs are currently available. On February 18, the Purpose Bitcoin ETF was launched as the first North American Bitcoin ETF. This was followed shortly after by the Evolve Bitcoin ETF.
In March, a third Canadian Bitcoin ETF, CI Galaxy, received regulatory approval. All three funds are traded on the Toronto Stock Exchange.
ARK looks beyond Grayscale
According to Bloomberg ETF analyst Eric Balchunas, ARK Invest, which currently owns more than 8.5 million shares of GBTC worth about $313 million, could dump its ARKW investment in the Grayscale Bitcoin Trust and then put that money into a Canadian bank. Stop Bitcoin ETF.
balchunas noticed that the Grayscale trust is down 22% since the beginning of the year compared to the 6% drop of the Purpose Bitcoin ETF over the same period.
“That’s a pretty big spread,” Balchunas speculated. “I’m sure they are annoyed by that,” Balchunas said.
So there is a clear appetite among US investors for a Bitcoin ETF. Still, SEC chairman Gary Gensler hinted last month that the Commission is reluctant to approve a Bitcoin ETF.