GBTC suffered heavy losses? Ark Investment revised prospectus, planning to open the door for Canadian cryptocurrency ETF

Ark Investment Management is preparing to enter the Canadian cryptocurrency ETF market. According to documents filed by Ark with the Securities and Exchange Commission (SEC), Ark Next Generation Internet (ARKW) has amended its prospectus to prepare for the possibility of investing in cryptocurrency exchange-traded funds (ETFs) in Canada.

Bloomberg ETF analyst Eric Balchunas believes that Ark Invest is looking to replace its investment in GBTC with a Canadian ETF. Currently, Ark Next Generation Internet holds over 8.5 million shares of GBTC, making it the fund's second-largest holding, but "GBTC is down 22% year-to-date, while the Canadian ETF is down 6%, I'm sure that's annoying them," Eric Balchunas wrote in a tweet.

INTERESTING: ARK just amended the prospectus for $ARKW to say the fund may invest in crypto ETFs in Canada. My guess is they looking to swap out $GBTC, which they own $350m worth for one of the Candian ETFs, which tracks better. $BLOK just did this. pic.twitter.com/fVoiGI4CYH

— Eric Balchunas (@EricBalchunas) September 10, 2021

Eric Balchunas pointed out that Ark has amended its prospectus, indicating that the fund may invest in a Canadian crypto ETF, with Ark hoping to exchange its $350 million worth of GBTC for a better-performing Canadian crypto ETF.

Ark's revised filing with the SEC states: "The fund may have indirect exposure to cryptocurrency by investing in trust or other pooled investment vehicles (such as ETFs traded on exchanges registered in Canada), such as Bitcoin," to replace the previous recruitment content.

The amended document further states that the fund may invest in Grayscale Bitcoin Trust (GBTC) or "other pooled investment vehicles investing in Bitcoin, such as ETFs listed and traded in Canada (Canadian Bitcoin ETF)."

This article is authorized reprint from Horizon News Network