ARK Web ETF Invests in Bitcoin with GBTC Purchase

A tech-focused exchange-traded fund (ETF) managed by ARK Investment Management has added Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term to its holdings, through its purchase of shares in Bitcoin Investment Trust (BIT).

BIT, publicly traded as GBTC on the US OTC Markets, debuted for trade in May. Each share represents one tenth of a bitcoin. Shares have traded at a premium to the value of their underlying bitcoin since inception, possibly a result of low secondary supply or the perceived safety of a regulated fund. Bitcoin currently trades near $230, while GBTC last closed at $29.99, representing a 30% premium. The gap had closed to as low as 18% during a bout of late August Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.

The ARK Web x.0 ETF (NYSEArca: ARKW) is now composed of 0.27% GBTC. The fund’s market value is roughly $12 million; it purchased roughly $32,000 worth of the shares.

The ARK Web x.0 ETF invests heavily in technology stocks. Its top holdings are Athenahealth and LinkedIn, with other sizeable stakes in Apple, Amazon, Netflix and Facebook. It has placed a recent focus on disruptive technology, a common descriptor for Bitcoin.

The fund’s general philosophy is that the bull market will continue, with technology leading the way to yield value and returns. “Innovation is inevitable, and truth ultimately wins out in the equity market” is one of the firm’s slogans.

Bitcoin has become one of its interests, the firm producing two research papers on the topic during the last seven days. And while much of the mainstream financial community favors Bitcoin for its technology over the currency, ARK sees it differently. "We're believers in bitcoin, the currency, and Bitcoin, the technology platform. We also believe that current prices present an attractive entry point for our investors," said ARK's Founder and Chief Investment Officer Cathie Wood.

Since launching roughly one year ago, shares of ARK Web x.0 have gained 10%.