Wall Street's star fund manager Cathie Wood, CEO of ARK Invest, has long been a vocal advocate for cryptocurrencies. Frustrated by the prolonged regulatory delays for a U.S. Bitcoin ETF, Wood is now shifting focus to Canada to explore new avenues for digital asset exposure.
ARK Invest’s Strategic Pivot to Canadian Crypto ETFs
- Updated Prospectus: ARK recently amended the prospectus for its $5.7 billion ARK Next Generation Internet ETF (ARKW) to include indirect exposure to cryptocurrencies via Canadian-listed ETFs.
- Key Addition: The filing explicitly lists "Canadian Bitcoin ETFs" as eligible investments, signaling a tactical move to bypass U.S. regulatory hurdles.
- Existing Bitcoin Exposure: ARKW already holds ~5.5% of its portfolio in the Grayscale Bitcoin Trust (GBTC), valued at over $313 million.
Limitations of U.S. Crypto Investment Vehicles
While GBTC offers U.S. investors a straightforward way to gain Bitcoin exposure, its structure suffers from inefficiencies:
- Premiums/Discounts: GBTC’s market price often deviates from its underlying Bitcoin holdings.
- Performance Gap: Since Canada’s Purpose Bitcoin ETF (BTCC) launched in February 2021, GBTC has declined ~20%, underperforming BTCC (-9%) and ARKW (-6.5%).
Cathie Wood’s Bold Bitcoin Advocacy
Wood remains a staunch Bitcoin optimist, praising its inflation-hedging properties:
- Price Target: In May 2021, she reiterated a long-term Bitcoin price target of **$500,000** (vs. ~$46,000 at press time).
- Regulatory Critique: ARK’s exploration of Canadian ETFs highlights growing impatience with the SEC’s backlog of over a dozen U.S. Bitcoin ETF applications, including ARK’s joint proposal with 21Shares AG (June 2021).
FAQ Section
Q: Why is Cathie Wood investing in Canadian Bitcoin ETFs?
A: Due to delays in U.S. Bitcoin ETF approvals, Canadian ETFs offer a compliant alternative for crypto exposure.
Q: How does GBTC compare to Canadian Bitcoin ETFs?
A: GBTC’s structural flaws often lead to price disparities, while Canadian ETFs like BTCC track Bitcoin more directly.
Q: What’s ARK’s long-term outlook for Bitcoin?
A: Wood predicts Bitcoin could reach $500,000, driven by its scarcity and institutional adoption.
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Keywords: Bitcoin ETF, Cathie Wood, ARK Invest, Canadian ETFs, Grayscale Bitcoin Trust, cryptocurrency regulation, SEC delays, digital asset exposure
**Notes**:
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- Expanded analysis with performance data and structural comparisons.
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