- Ark Investment Management, led by Cathie Wood, is actively navigating the competitive landscape of spot-Bitcoin exchange-traded funds (ETFs). In a strategic move, the ARK Next Generation Internet ETF (ARKW) sold $16 million of its ProShares Bitcoin ETF (BITO) position and acquired 365,427 shares of the ARK 21 Shares Bitcoin ETF (ARKB). This maneuver positions ARKB at 1% of the ARKW fund, offering a competitive edge in the burgeoning market for spot-Bitcoin ETFs.
- The Securities and Exchange Commission's approval of 10 simultaneous ETF launches has intensified the competition, eliminating the possibility of a first-mover advantage. In this high-stakes environment, the influx of funds from influential entities like ARK Investment Management can significantly impact the success of spot-Bitcoin ETFs. Notably, Cathie Wood's involvement in ARKB is seen as a strategic move to quickly gain scale, a crucial factor for financial advisers and platforms with minimum-asset thresholds.
Why it matters
In the last three days, investors have poured an estimated net $803 million into these funds. BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's FBTC lead in cash inflows, with $710 million and approximately $524 million, respectively. This strong demand is evidenced by significant trading volume, with nearly $9.8 billion worth of shares exchanged in the first three days of trading, comparable to the traded value of all 500 ETFs launched in 2023.
