According to an SEC filing, investment management firm Ark Invest plans to launch a fund that will invest in Canadian bitcoin exchange-traded funds (ETF).
Fund manager for digital assets According to an SEC filing, Ark Investment Management plans to launch funds that will allow investors to invest in Canadian bitcoin ETFs. The application specifies that the fund may invest in funds listed in Canada, specifically Canadian bitcoin ETFs.
It mentions that the risks of investing in the fund are similar to those of investing directly in bitcoin. According to Ark Invest, “the Fund may trade at a significant premium or discount to NAV,” which is typical of ETFs.
Ark Invest is a New York-based investment management firm with over $50 billion in assets under management. Cathie Wood, an American investor, founded the firm in 2014.
Bitcoin and other cryptocurrencies ETFs are widely regarded as a critical step toward making the market more accessible to the general public. ETFs must follow stricter regulations designed to protect investors. Investor protection and market manipulation have been top priorities for regulators around the world.
Canada and Europe are moving forward with bitcoin ETFs, while the United States is hesitant.
Canada is one of the few countries that has approved a bitcoin exchange-traded fund (ETF). Brazil and a French fund approved by the European Union are among them. Those who have invested in the crypto market applauded these moves, believing that they will provide some legitimacy and protection to the market.
However, the United States has dominated ETF news, which is unsurprising given that it is one of the most popular markets for cryptocurrency. Over a dozen ETFs are currently awaiting a decision from the Securities and Exchange Commission in the United States. However, the prognosis is not promising.
The SEC and its Chairman, Gary Gensler, have repeatedly expressed concern about investor protection. They do not appear to be willing to make decisions until a regulatory framework is in place. The silver lining is that the United States appears to be preparing a regulatory framework.
Despite the uncertainty surrounding the SEC and ETF approvals, many large corporations are interested in ETFs. In July, Goldman Sachs filed an ETF focused on DeFi with the SEC. This provides some hope that a favorable decision will be reached in the medium to long term, which will please investors.