ARK Invest, directed by Cathie Wood, launched the first cryptocurrency SMAs for advisers and managers of financial assets on October 3.
ARK will manage two investment strategies for clients officially enrolled in the investments: “Crypto assets” and “Cryptocurrency.”
Something New For Cryptophiles
Cathie Wood, ARK’s owner, has said that the firm has been participating in crypto since its inception. They provide their customers with equities and securities investing services relating to cryptocurrencies.
By working together, Ark and Eaglebrook will be able to provide more “wealth management crypto techniques” to the market.” It will help increase their influence in the cryptocurrency sector.
Furthermore, Wood underlined that the firms would independently manage the strategies. Via individual holdings tailored to each participant’s requirements, allowing them to broaden their investment base by including digital assets.
Eaglebrook Advisors’ founder Christopher King said ARK’s coin, trusted by institutions and can be accessed solutions, would help advance the industry.
“With ARK’s help, we’ll provide the wealth management sector with easier access to professionally managed cryptocurrency investment methods. This partnership will help in propelling the industry ahead.”
ARK’s Investment Philosophy: How Will It Play Out?
The announcement claims that the two investment plans would operate separately. It implies that the amount of risk (and thus the potential reward) faced by each SMA may vary over time.
ARK’s Cryptocurrency Strategy is for those who want to invest mainly in the most popular cryptocurrencies. They include ETH and BTC for a maximum potential return.
The strategy for managing crypto at ARK will be more precarious since it will consist of ten to twenty alternative cryptocurrencies. These cryptocurrencies strongly emphasize Distributed Ledger Technology and Financial Smart Contracts, Web 3, System architecture, and expansion.
Expert in crypto assets Yassine Elmandjra recently said that “The cryptocurrency market’s speculative behavior has cooled down.” Making this an ideal opportunity for ARK to provide these methods to investors.
Ark Invest’s Past Crypto Activities
Ark Invest oversees eight ETFs in America at present. However, the SEC has shot down its proposed Bitcoin ETF because of fears that it wouldn’t adequately safeguard market participants from volatility. The United States has not authorized a spot-market crypto ETF as of yet.
Evolutionary New Technology by ARK Exchange Traded Fund (ARKK) is a favorite among crypto investors for its extensive cryptocurrency holdings. Grayscale Bitcoin Trust, Coinbase, Twitter, and Tesla are some of the crypto equities.
The company has a robust outlook on cryptocurrency. Cathie Wood predicted in April 2022 that Bitcoin would be worth $1 million by 2030. Such a hefty cost implies that investors know Bitcoin’s worth.