Ark Invest Is Looking to Launch a Venture Fund

The proposed product would invest in publicly traded, privately placed, or restricted securities of companies engaged in “disruptive innovation,” such as blockchain firms and bitcoin. The proposed product would invest in publicly traded, privately placed, or restricted securities of companies engaged in “disruptive innovation,” such as blockchain firms and bitcoin.

Ark Invest has filed to launch a venture fund that will invest in companies engaged in disruptive innovation, including those involved in crypto and blockchain technologies.

The New York-based investment firm has nine exchange-traded funds trading in the United States, with a total asset value of about $22 billion.
According to a disclosure filed Thursday, the new fund will be structured as an interval fund, which means it will conduct quarterly repurchase offers for an expected 5% of the fund’s shares.

It would invest in both publicly traded securities and privately placed or restricted securities. The fund requires a $1,000 minimum initial investment.

The Ark Venture Fund seeks to invest in companies that are revolutionising genomics, transforming automation and energy usage, as well as businesses focused on artificial intelligence, financial technology, and the next generation of the internet.

According to the filing, this category includes companies that “develop, use, or rely on” blockchain technologies. The fund may also have indirect exposure to cryptocurrencies like bitcoin through an investment in the Grayscale Bitcoin Trust (GBTC).

A representative for Ark declined to comment further on the proposed fund.
In a Twitter post, Bloomberg intelligence analyst James Seyffart stated that the interval fund structure makes sense for Ark’s investment strategy.

“Can buy semi-private investments, control inflows and outflows, and close the fund,” he tweeted. “All of this will allow Ark to delve deeper into smaller names while being less concerned about liquidity risk.”

Ark Invest and 21Shares filed for a physically backed bitcoin ETF in June, a type of product that has yet to be approved by the US Securities and Exchange Commission (SEC). Recently, the firm partnered with 21Shares to bring a bitcoin futures-based ETF to market.

Cathie Wood, the founder and CEO of Ark, stated at a virtual Barron’s conference in November 2020 that she believes bitcoin could reach $500,000 in the long run. During a Jan. 25 webinar, she made more bullish remarks about crypto technologies in general.
“We do believe that decentralised finance will usurp the role of most financial services companies today,” she said during a conversation with Chris Hayes on MSNBC.

According to Ark’s “Big Ideas” report, which was released last month, ether’s market capitalization which is currently around $345 billion could exceed $20 trillion in the next ten years.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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