Investing.com – Cathy Wood’s ArcInvest investment fund isn’t holding back on cryptocurrencies after the stunning drop in prices and the bankruptcy of FTX. The Ark Next Generation ETF purchased 315,259 shares of Grayscale Bitcoin Trust on Monday. The latter now represents 4.6% of the assets of the Ark Fund.
There is no such thing as a pure ETF, and the Grayscale vehicle is seen as a proxy for gaining exposure to the most popular cryptocurrencies. However, its price has fallen more than 80% in the past year and the fund is trading for far less than the value of the bitcoin it holds.
The cryptocurrency industry has been in turmoil for two weeks as one of the most popular cryptocurrency exchanges, FTX, collapsed. The company filed for bankruptcy last week after rival Binance withdrew from a potential bailout deal, and CEO Sam Bankman-Fried resigned amid reports that FTX had left linked hedge fund Alameda Research negotiating client funds.
ARK said in a news release Monday that there are “several positive aspects” to these events, including the fact that the bitcoin blockchain has continued to function during the FTX crisis and argued that it will move the industry forward. to be more transparent.
“ARK’s belief in the long-term promise of public blockchains across currencies, finance, and the Internet is unwavering. As the crypto-asset market may operate under pressure from short-term sell-offs and liquidity shortages, we believe this crisis cleans up the bad actors and improves the health of the cryptocurrency ecosystem with more transparency.” and decentralization in the long term.