Crypto News: Cathie Wood’s Ark Invest Seeks Approval for Several Bitcoin ETFs


Crypto News: Cathie Wood’s Ark Invest Seeks Approval for Several Bitcoin ETFs


Cathie Wood’s Ark Invest files for multiple Bitcoin ETFs, including ARK Bitcoin Yield and ARK DIET, amid growing interest in crypto products.

Ark Invest, led by Cathie Wood, has filed for several new Bitcoin ETFs with the U.S. Securities and Exchange Commission (SEC). 

The filings include the ARK Bitcoin Yield ETF, ARK DIET Bitcoin 1 ETF, and ARK DIET Bitcoin 2 ETF. These new products come after the SEC approved generic listing standards for crypto exchange-traded funds, signaling Ark Invest’s continued push into the digital asset market.

Ark Bitcoin Yield ETF to Offer Steady Yield

The ARK Bitcoin Yield ETF aims to provide income for investors focused on generating steady returns from Bitcoin-linked strategies. This fund plans to reduce Bitcoin’s volatility by selling options and collecting premiums over time. It is designed for investors who want exposure to Bitcoin but are also looking for consistent yields from their investments.

Ark Invest has framed this product as a way for investors to earn income from Bitcoin while minimizing some of the volatility typically associated with cryptocurrency markets. The fund will invest up to 25% of its assets in Ark Invest’s own funds. 

Similar products, such as BlackRock’s iShares Bitcoin Premium Income ETF, have recently been filed, highlighting growing interest in income-generating Bitcoin products.

ARK DIET Bitcoin ETFs with Downside Protection

The ARK DIET Bitcoin 1 ETF and ARK DIET Bitcoin 2 ETF are both designed to offer some level of protection against Bitcoin’s downside. 

Moreover, the ARK DIET Bitcoin 1 ETF will provide 50% downside protection but will only participate in Bitcoin’s upside after a 5% price increase. This design aims to shield investors from significant losses while still capturing some upside potential when Bitcoin’s price increases.

The ARK DIET Bitcoin 2 ETF takes a different approach, offering downside protection for the first 10% of losses. 

The fund will participate in Bitcoin’s upside once its price exceeds the value at the start of each outcome period. These ETFs will provide investors with exposure to Bitcoin while managing risk during price downturns.

Bitcoin Price Movements Amid ETF Inflows

The price of Bitcoin has been fluctuating, with recent inflows into Ark Invest’s Bitcoin ETFs. On Tuesday, Ark Invest’s 21Shares Bitcoin ETF (ARKB) saw $6.8 million in inflows. 

Overall, spot Bitcoin ETFs in the United States saw a net influx of $102.7 million, marking a reversal from previous days of outflows. However, despite these inflows, Bitcoin’s price dropped below $113K after briefly rising above it.

The price of Bitcoin is down nearly 1% from its peak, reaching a low of $110,029 in the past 24 hours. 

Trading volume increased by 30% following comments from Federal Reserve Chair Jerome Powell about potential rate cuts. This caused a rebound in Bitcoin prices, though the overall market remains cautious, as indicated by the drop in Bitcoin futures open interest.

These developments suggest that while Ark Invest’s Bitcoin ETFs could contribute to Bitcoin’s market activity, the cryptocurrency’s price remains volatile in the short term.

The post Crypto News: Cathie Wood’s Ark Invest Seeks Approval for Several Bitcoin ETFs appeared first on Live Bitcoin News.





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