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How does the ARK ETF invest in Bitcoin?

SomeDude04Jan 03, 2023 · 3 years ago3 answers

Can you explain how the ARK ETF invests in Bitcoin? I am curious about the specific investment strategies and mechanisms used by the ARK ETF to gain exposure to Bitcoin.

3 answers

  • Salat11kDec 15, 2021 · 4 years ago
    The ARK ETF invests in Bitcoin by purchasing shares of the Grayscale Bitcoin Trust (GBTC). GBTC is a publicly traded trust that holds Bitcoin, and the ARK ETF buys shares of this trust to gain exposure to Bitcoin. This allows the ARK ETF to indirectly invest in Bitcoin without directly holding the cryptocurrency itself. By investing in GBTC, the ARK ETF can provide its investors with a way to gain exposure to Bitcoin through a regulated and familiar investment vehicle.
  • Amit RaiJun 15, 2024 · a year ago
    To invest in Bitcoin, the ARK ETF uses the Grayscale Bitcoin Trust (GBTC) as a vehicle. GBTC is a trust that holds Bitcoin, and the ARK ETF purchases shares of this trust. This allows the ARK ETF to track the performance of Bitcoin without directly owning the cryptocurrency. Investing in GBTC provides the ARK ETF with a regulated and secure way to gain exposure to Bitcoin for its investors.
  • SafiFeb 06, 2025 · 6 months ago
    The ARK ETF invests in Bitcoin through the Grayscale Bitcoin Trust (GBTC). GBTC is a trust that holds Bitcoin, and the ARK ETF buys shares of this trust. By investing in GBTC, the ARK ETF can provide its investors with a convenient and regulated way to gain exposure to Bitcoin. This strategy allows the ARK ETF to benefit from the potential growth of Bitcoin while minimizing the risks associated with directly holding the cryptocurrency.

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