Cathie Wood's ARK Invest files for bitcoin ETF

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CNBC Television 28 June, 2021 - 04:14pm 48 views

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ARK Investments partners with 21Shares on a newly proposed bitcoin ETF

The Block Crypto 28 June, 2021 - 08:59pm

21Shares is the sponsor of the trust while ARK will assist in marketing the ETF shares, according to the newly filed S-1.

The aim is to offer direct exposure to bitcoin through shares valued daily based on the S&P Bitcoin Index, the tool developed by S&P Dow Jones Indices. The index relies on data from Binance, Bitfinex, Bitflyer, Bittrex, Bitstamp, Coinbase Pro, Gemini, HitBTC, Huobi, Kraken, KuCoin and Poloniex to arrive at a unified price based on "a combination of qualitative and quantitative metrics," according to the S-1.

Like other offerings before the Securities and Exchange Commission (SEC) the ARK 21Shares Bitcoin ETF is looking to trade on the Cboe BZX Exchange. Cboe has filed multiple 19b-4s — the filing an exchange submits to list the shares of an ETF-hopeful's new fund — to launch other similar funds like VanEck and WisdomTree among others. 

Coinbase is slated to custody the bitcoin for the newly proposed ETF, while Bank of New York Mellon will serve as administrator and transfer agent. 

Recently, bitcoin ETF applications have seen a wave of extensions as the SEC seeks more time to examine the proposals before it. The clock will start on a decision for the ARK 21Shares offering when Cboe files the companion 19b-4 and it hits the public register.

Cathie Wood's Ark Invest is working with provider 21Shares to create a bitcoin ETF

Markets Insider 28 June, 2021 - 06:30pm

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Cathie Wood's ARK Invest files to offer a bitcoin ETF

Reuters 28 June, 2021 - 06:09pm

June 28 (Reuters) - Star stock picker Cathie Wood's ARK Invest filed with the U.S. Securities and Exchange Commission on Monday to create a bitcoin exchange traded fund (ETF), the latest fund manager attempting to cash in on investors' growing interest in cryptocurrencies.

Wood, whose ARK Innovation ETF was the top-performing U.S. equity fund last year, has been a vocal proponent of bitcoin.

Her flagship ARK Innovation fund (ARKK.P) owns around $820 million worth of shares in cryptocurrency exchange Coinbase Global (COIN.O), making it the fund's 10th largest holding. Coinbase has fallen 35% since its stock market debut in April.

ARK's application to the SEC follows recent filings by Fidelity and CBOE Global Markets in March. The SEC has yet to approve a bitcoin ETF.

Bitcoin , tumbled in recent days to a two-week low as China's expanding crackdown on bitcoin mining made investors more uncertain about the future of the leading cryptocurrency. Bitcoin on Monday traded at about $34,450, compared to its April peak of nearly $65,000.

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Cathie Wood’s ARK Invest is readying the first bitcoin ETF with 21Shares

MarketWatch 28 June, 2021 - 04:17pm

You can throw Cathie Wood’s ARK Invest in the ring of companies hoping to eventually offer a bitcoin-backed exchange-traded fund.

A spokeswoman for ARK Invest said that the company couldn’t comment on its plans. In the effort, ARK joins with a U.S. affiliate of 21Shares AG, a Switzerland-based provider, which has been behind a number of exchange-traded products.

Wood, the ARK Investment Management CEO and prominent promoter of technologies that she perceives as disruptive, has estimated that bitcoin’s price, currently at around $34,000, down about 50% from its mid-April peak, could hit as high as $500,000 if all institutions were to assign a mid-single-digit allocation to the virtual asset, putting it on their balance sheets.

A bitcoin ETF has been the holy grail of the crypto industry, but one that looks increasingly unlikely to be achieved this year under Gary Gensler, the new commissioner of the Securities and Exchange Commission.

A bitcoin ETF is seen as offering wider accessibility to average investors seeking direct crypto exposures.

ARK Invest has been a big investor in GBTC.

Transocean, an offshore-drilling contractor, and fracking pioneer Continental Resources have seen shares rocket in 2021. Both have insiders scooping up more stock.

Mark DeCambre is MarketWatch's markets editor. He is based in New York. Follow him on Twitter @mdecambre.

ARK Files For Bitcoin ETF

TheStreet 28 June, 2021 - 03:59pm

The news was first broken by Eric Balchunas on Twitter, who noted that it would be the 12th bitcoin ETF filing since just the end of last year.

First, Cathie Wood has been a big bitcoin and cryptocurrency bull for a while. The Grayscale Bitcoin Trust (GBTC), perhaps the closest thing to a bitcoin ETF in the United States at the moment, is already a top 10 holding in the ARK Next Generation ETF (ARKW) at nearly 4% of total assets. GBTC charges a 2% annual expense ratio for this product, so it's not necessarily inexpensive to hold (although 2% is barely a blip on the radar in the cryptocurrency world). Launching a lower cost bitcoin fund would come much cheaper and would provide easy access to bitcoin for other ARK ETFs potentially interested in holding a position. ARK's own 3D Printing ETF (PRNT) is already that 2nd largest holding in the ARK Space Exploration ETF (ARKX).

Second, Cathie Wood joined the board of Amun, the parent company of 21Shares, the issuer with which ARK would be partnering on this, just recently in May. If you're wondering exactly who 21Shares is, they are a big crypto exchange-traded product provider over in Europe. They've got about $2 billion in assets spread across more than a dozen ETF products, including those focused on bitcoin, ethereum, ripple, polkadot and cardano. Balchunas also noted on Twitter that this filing, if approved, would pave the way for 21Shares' entry into the U.S. market.

In theory, the first issuer to get a bitcoin ETF approved would probably draw $1 billion in assets pretty quickly, but it's unclear when that will happen and who the big winner would be. VanEck just had a decision on its bitcoin ETF delayed as have others in the recent past. The SEC for its part has shown no real motivation to get a product approved, despite existing approvals in both Europe and Canada. Several members of the governing body have continually expressed their concern over a lack of regulation and the potential for shareholder harm if a bitcoin ETF were to be approved.

While there are a few other major ETF issuers on the list of those having filed for bitcoin ETFs already, ARK is clearly the biggest name of the bunch. Given the timing, it seems unlikely that ARK would be the first to get the nod (unless the SEC eventually decides to approve them all at once).

I maintain my original prediction that a bitcoin ETF will not get approved until 2022 at the earliest.

Cathie Wood's Ark Invest files to create a bitcoin ETF

CNBC 28 June, 2021 - 03:26pm

Cathie Wood's Ark Invest filed with the Securities and Exchange Commission on Monday to create a bitcoin exchange-traded fund.

Wood — a longtime bitcoin bull — has been buying up proxies for the digital asset in names such as Coinbase and Grayscale Bitcoin Trust. Now, the innovation investor is seeking to own the actual asset itself.

The ETF's investment objective is to track the performance of bitcoin, according to the SEC filing. The fund would trade under the ticker symbol "ARKB," if approved by the SEC. Ark Invest is working in partnership with 21Shares to launch the ETF.

However, the digital asset has nearly been cut in half since its all-time high of about $63,000 in April. China's bitcoin crackdown, Tesla CEO Elon Musk's decision to stop accepting bitcoin for its electric vehicles, and excessive risk taking by crypto traders have all contributed to recent price swings.

Ark Invest acknowledged the volatility associated with the digital asset in the "risk factors" section of the filing.

"The market value of bitcoin is not related to any specific company, government or asset. The valuation of bitcoin depends on future expectations for the value of the Bitcoin network, the number of bitcoin transactions, and the overall usage of bitcoin as an asset. This means that a significant amount of the value of bitcoin is speculative, which could lead to increased volatility. Investors could experience significant gains, losses and/or volatility in the Trust's holdings, depending on the valuation of bitcoin," the S1 filing stated.

The SEC last week again postponed a decision to approve the first bitcoin ETF. The latest action comes as SEC Chairman Gary Gensler has called for more regulation of cryptocurrency exchanges and greater investor protections.

So far, there have been eight other bitcoin ETFs filed with the SEC.

Coinbase, the world's largest cryptocurrency exchange, is a top 10 holding in Wood's flagship fund Ark Innovation. Grayscale Bitcoin Trust is a top 10 holding in Ark Next Generation Internet ETF.

Wood has said she sees a future where bitcoin is part of a balanced investment portfolio. Ark Invest estimates that if 1% of the corporate cash of every company in the S&P 500 were converted into bitcoin, then the asset's price would balloon by more than $40,000 from its current levels. If the cash level increased to 10% from each company in the broader stock index, bitcoin's price would increase by more than $400,000, the firm said.

With Gensler — a longtime financier who taught a digital currency class at the Massachusetts Institute of Technology — being nominated to lead the Securities and Exchange Commission, the watchdog could warm to crypto during the Biden administration, Wood told CNBC earlier this year.

Wood's disruptive innovation funds have recently turned a corner after months of underperformance amid a rotation into value stocks. Shares of Ark Innovation are up more than 16% in June.

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Cathie Wood Funds Jump as Gene Editing Edges Closer to Reality

Yahoo Finance 28 June, 2021 - 03:25pm

Wood’s Ark Investment Management LLC is a top holder of companies operating in this area after the active investor made an early bet on Crispr Therapeutics AG, Intellia Therapeutics Inc. and Editas Medicine Inc.-- three companies using a technology for editing the human genome called Crispr. Ark is also the second largest holder in Beam Therapeutics Inc., another company working on fixing genetic mutations.

All four stocks rallied after Intellia and Regeneron Pharmaceuticals Inc. produced the first study of a Crispr treatment to alter genes inside the body, driving up the stocks of gene editing and other biotechs working with therapies around human DNA. The move marks a rebound for Editas and Crispr, as well as a pair of Wood’s actively managed exchange traded funds, which were hammered earlier this year as investors turned away from more speculative growth stocks to value safe havens.

The Ark Genomic Revolution ETF rose 3.3% on Monday while the $25 billion Ark Innovation ETF rallied 3.8% into the close of trading in New York.

“This may sway the FDA to be more constructive toward running gene editing trials in the U.S.,” said Benjamin Burnett an analyst with Stifel. Intellia’s trial was also a good sign for Precision BioSciences Inc., he told clients in a research note, and the stock climbed 6.6%.

Intellia led the gains, soaring 50% to close at a record on Monday, while Crispr climbed 6.4%. Beam jumped 16%. Editas gained as much as 20% before paring to a 5% gain.

Sentiment driven gains for Editas are “unwarranted” Goldman Sachs analyst Madhu Kumar told clients saying he saw a lack of similarities between sell-rated Editas and buy-rated Intellia’s technologies. The bank raised the 12-month price target on Intellia to $163 from $115.

Meanwhile, Alnylam Pharmaceuticals Inc. which works on a medicine to treat transthyretin amyloidosis --the disease Intellia is trying to cure in its study -- dropped 5.2%. Intellia is already hard at work on its next target, hereditary angioedema. BioCryst Pharmaceuticals Inc. and KalVista Pharmaceuticals Inc., companies working on treatments for that disease also tumbled.

“We believe this data will enter the history books, signifying that in vivo gene editing and one-time cures are possible,” Ark analyst Ali Urman wrote after Intellia’s update. “The only question remaining is will it be durable?”

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You can throw Cathie Wood's ARK Invest in the ring of companies hoping to eventually offer a bitcoin-back exchange-traded fund?

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The CEO has been the world’s richest man and played a key part in some of the most well-known technology companies around today

Wood, whose ARK Innovation ETF was the top-performing U.S. equity fund last year, has been a vocal proponent of bitcoin. Her flagship ARK Innovation fund owns around $820 million worth of shares in cryptocurrency exchange Coinbase Global, making it the fund's 10th largest holding.

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ARK Innovation ETF (ticker: ARKK), which focuses on companies with disruptive technologies or innovative business models, plunged nearly 37% from February to mid-May. The rising 10-year Treasury yields and inflation fears have discounted growth stocks’ future cash flow—and the group jittered, including all of ARK’s ETFs. ARK Invest’s six actively managed ETFs have gained an average of 22% since May 13, with ARK Innovation leading the chart, up by 31.3%, and the (ARKX) (ARKX) lagging with just 9.3% gains.

ARK Innovation Hits Highest Level in Two Months

Barron's 28 June, 2021 - 01:23pm

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The flagship exchange-traded fund of ARK Invest’s Cathie Wood jumped 4.2% on Monday to hit its highest level in two months. 

ARK Innovation ETF (ticker: ARKK), which focuses on companies with disruptive technologies or innovative business models, plunged nearly 37% from February to mid-May. After the drop, the ETF had roughly $21 billion in assets; now the number is $24 billion.

The rising 10-year Treasury yields and inflation fears have discounted growth stocks’ future cash flow—and the group jittered, including all of ARK’s ETFs. But the ARK funds have been recovering, lifted as investors get a grip on their inflation fears and put their money back into innovation stocks.

ARK Invest’s six actively managed ETFs have gained an average of 22% since May 13, with ARK Innovation leading the chart, up by 31.3%, and the ARK Space Exploration & Innovation ETF (ARKX) lagging with just 9.3% gains.

At midday, ARK Innovation was trading around $130 a share, surpassing its previous high of $127.73 reached on April 26. It is now more than 4% above where it started the year, although still down 17% from its February peak

In a newsletter last week, Woods shared her view on inflation.

“While others extrapolated those trends into the future, ARK has maintained that inflation would prove temporary thanks both to the base effects caused by the price collapses last year and to supply chain bottlenecks that will cause double- and triple-ordering of supplies, a massive inventory overhang, and a commodity price collapse,” she wrote.

Woods noted that both lumber and copper prices have been dropping in the past six weeks.

“We believe oil prices will not be far behind, despite the significant cutbacks in energy-related capital spending, particularly if drivers in the ride-sharing space take advantage of the lower total cost of EV ownership,” she wrote.

During the pullback of growth stocks, Wood has been buying dips in companies that she likes. Most recently, she decided to take advantage of the latest crypto correction: Bitcoin nosedived 20% in seven days to below $30,000 last Tuesday, the lowest level since late January. 

Trading records suggest that Wood added 1 million shares of the Grayscale Bitcoin Trust (GBTC) to the ARK Next Generation Internet ETF (ARKW), boosting the cryptocurrency’s weight in the fund by a half-percentage point. Bitcoin has bounced back 18% and was trading around $34,200 on Monday. 

Wood is a longtime crypto bull. With no Bitcoin ETF in the U.S. market, the fund manager has been investing in the digital currency through the closed-end trust and has been steadily growing her positions. The Grayscale Bitcoin Trust is now the eighth largest holding of the ARK Next Generation Internet ETF, making up 3.9% of its assets. 

Wood also has been building her position in cryptocurrency exchange  Coinbase Global (COIN) since the stock went public in April. The stock now has more than 3% weight in both ARK Innovation and ARK Next Generation Internet ETF. Coinbase shares jumped 8.1% on Monday, but are still priced 26% below the $328.28 at the close of their first trading day. 

Write to Evie Liu at evie.liu@barrons.com

The flagship exchange-traded fund of ARK Invest’s Cathie Wood jumped 4.

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These 3 High-Dividend Stocks Have Cathie Wood's Seal of Approval | The Motley Fool

The Motley Fool 28 June, 2021 - 04:05am

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Cathie Wood has become an investing sensation in recent years. As the founder of the ARK Invest family of exchange-traded funds , amazing returns in 2020 gave her a reputation for finding little-followed high-growth companies early in their existence and riding them to big long-term gains. Investors in her ARK Innovation ETF (NYSEMKT:ARKK) and other funds have reaped the rewards.

Given Wood's emphasis on high-growth sectors of the market, you might be surprised to learn that some of her choices for fund holdings actually carry impressive dividend yields. For most growing companies, returning capital to shareholders through dividend payments takes a backseat to reinvesting available money back into the business to grow it further. Nevertheless, below, we'll take a closer look at some of ARK Invest's high-dividend holdings to see why they're appealing both to growth and income investors.

AbbVie (NYSE:ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. The pharmaceutical company qualifies as a Dividend Aristocrat, as it has consistently boosted its annual payouts to shareholders since its spinoff from Abbott Laboratories (NYSE:ABT) in the early 2010s. Abbott itself maintained a long track record that goes back roughly half a century.

AbbVie isn't a huge holding for Wood, but her ARK Genomic Revolution ETF (NYSEMKT:ARKG) has about $60 million invested in the pharma company. That's roughly 0.66% of the fund's total assets.

With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. Those include long-read genomic sequencing, multi-cancer screening, and cell and gene therapies. AbbVie has already done considerable research and development on experimental cancer drugs using genomic analysis, and promising results suggest the company will make even more of an effort to move in that direction. Meanwhile, investors benefit from a dividend yield topping 4.5%.

Novartis (NYSE:NVS) is also appealing to growth and income investors alike. The stock currently pays a dividend yield of 3.5%, but like AbbVie, the pharmaceutical company is looking into promising therapies that it hopes to use to come up with generations of future treatments to keep sales climbing over the long run.

Novartis is also a higher-conviction pick for Wood. You'll find its shares both in the Genomics ETF and in the flagship Innovation ETF, with total holdings combining to a nearly $380 million investment in the Swiss drugmaker. It's a top-10 holding in the Genomics ETF, making up more than 3% of total assets.

Novartis has done considerable work in the drug discovery realm, with efforts to use technology to build a digital data science platform. That makes the company somewhat of a pick-and-shovel play for Wood, as innovations that Novartis develops might end up proving useful to the other genomics-focused companies in which her ETFs invest.

Lastly, Takeda Pharmaceuticals (NYSE:TAK) plays a significant role in Wood's genomics-related positions. She's invested more than $250 million in the Japanese company, giving it a nearly 3% position in the Genomics ETF. It also boasts a dividend yield of nearly 5%, putting it in the upper echelon even among income investor-friendly pharma companies.

Takeda isn't a household name for many U.S. investors, but the company has concentrated its efforts lately on strategic acquisitions to bolster its R&D and drug pipeline capabilities. The Asian pharma giant has worked with major COVID-19 vaccine makers like Moderna (NASDAQ:MRNA) and Novavax (NASDAQ:NVAX) on the manufacturing and commercialization front, and it has also built up a stable of candidate treatments for cancer, liver disease, and other illnesses.

Of particular importance to Wood might be Takeda's leukemia drug Iclusig, as it fits well with her overall themes in the space. Takeda stock has lost significant value in recent years, and that makes Wood look a bit out of character as a buyer on attractive valuations as well as growth prospects.

Most of the stocks you'll find in Cathie Wood's ARK Invest funds are plowing every penny of cash flow they get back into their respective companies. However, even dividend investors can find some attractive picks among Wood's favorites. Those seeking income would do well to take a closer look at Takeda, Novartis, and AbbVie.

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