Yesterday’s surprise news that the ARK Web x. There are issues on a few levels that I have with this announcement. I get the allure gtbc bitcoin value Ark trying to make some noise in its flagship fund. 12 million in assets at the moment.
It’s also really suffered from on-screen liquidity problems, with less than a few thousand shares trading hands every day. But the thing is, I can’t help but root for it. It’s not crazy that it’s failed to find traction—it’s actively managed. And like most actively managed funds, it needs time to develop a track record before core ETF buyers, like financial advisors, will be willing to take the leap of faith. It’s about to come up on its one-year anniversary, and the truth is, it’s actually done very well versus broader-based tech funds. So, as much as I think the fund probably deserves more attention than it’s received so far from investors, I can’t help but think the timing of the bitcoin announcement is slightly set to mark the one-year anniversary and crow-able performance. I’m a bit more skeptical about the way in which it’s tackling bitcoins.
ETF—an actual ETF in registration that would solely invest in bitcoins. But Ark isn’t—instead, it’s investing in a company listed on the OTC pink sheets—the Bitcoin Investment Trust, which you can find on OTC under the ticker GTBC. On the surface, it looks like a closed-end fund—accredited investors can petition authorized participants to create or redeem shares in 100-share baskets in a process clearly based on the fundamental precepts of how ETFs work. But let me be perfectly clear: It may look like a duck, and quack like a duck, but GTBC ain’t no duck. It’s essentially entirely unregulated by the SEC. In fact, the whole reason Ark can get away with this quasi-ETF-like structure is precisely because the SEC hasn’t even decided what bitcoins are yet.