Kathy Wood’s investment company, ARK Investment, is making two actively managed cryptocurrency strategies available to registered investment advisors. The strategies will be available as Separately Managed Accounts (SMAs) through a partnership with digital asset platform Eaglebrook, the companies announced on October 3.
The companies said in a statement that ARK’s cryptocurrency strategy aims to capitalize on the monetary revolution, saying it “can serve as a strategic allocation in well-diversified portfolios.”
Cathy Wood, Founder and CEO of ARK said:
“Strategies will be managed separately from accounts (SMA) designed to meet the needs of financial advisors, asset managers and their clients, while offering direct ownership, low minimums and portfolio reporting integration among other benefits.”
This collaboration should make it possible for Ark to expand its services beyond exchange-traded funds (ETFs). SMA is a portfolio created by a financial advisor or investment company for a single investor. In ETFs, investors own the fund’s shares, not the underlying securities.
According to the official website, Ark Innovation ETF is a Tier 1 ARKs ETF, committed to long-term capital growth by investing in advanced innovation companies. It has $7.946 billion under management and is down 60.11% as of September 30, while the S&P 500 is down 23.87% and the price of BTC is down 58% in 2022. Wood is known to be a big supporter of Bitcoin (BTC). Expect BTC to reach $1 million by 2030.
“A lot of speculative behavior has subsided,” Yassin al-Manjar, a crypto-asset analyst at ARK, said in a statement. She added that the moment “represents an attractive entry point for investors”.
Ark sold more than 1.4 million shares of Coinbase (COIN) through three of its funds in July as regulators investigated alleged insider trading. At the time, the company was one of the largest shareholders in Coinbase.