Ark raises $16 million for cryptocurrency fund

Cathie Wood’s Ark Invest has raised a new $16.3 million cryptocurrency fund despite market turmoil.

Ark America and Cayman successfully raise funds

Innovation-focused fund manager Ark Invest has raised more than $16 million for a new cryptocurrency fund that will be split between domestic and Cayman Islands accounts. The information was released as the company’s filings with the U.S. Securities and Exchange Commission went live. The reported $16.3 million in funding was raised through two different sources. ARK Crypto Revolutions US Fund LLC has raised its first $7.3 million from nine investors. On the other hand, the remaining $9 million was raised from a single investor by ARK Crypto Revolutions Cayman Fund LLC. The filing documents show that both funds will open for investment on March 1, 2023. Also, since the fund’s underlying is marked as “doubtful,” it shows that its purpose remains open-ended and can be applied to a variety of investments.

Ark Adds More Stakes

Ark Invest also added $20 million worth of Block stock to its fund last week, according to the filing. On top of that, the firm has added around $30 million in Coinbase stock to its fund in February 2023. The stunning bear market isn’t slowing Ark Invest down. The company has been on a cryptocurrency buying spree, as evidenced by its rampant stock purchases.

The company’s CEO, Cathie Wood, has been steadfastly bullish on the industry in general, and bitcoin in particular, even after the woes in 2022. In early 2022, Ark released its Big Ideas report, predicting that Bitcoin will reach $1.36 million by 2030.

In an excerpt from the report, Wood wrote,

“We believe that Bitcoin is the most profound application of public blockchains, the foundation of “sovereign” cryptocurrencies. The Bitcoin protocol has enabled two other revolutions: the financial (DeFi) and Internet (Web3) revolutions.”

CEO remains bullish on cryptocurrencies

Her firm has taken advantage of low prices in a bear market to snap up cryptocurrencies left and right. In November, for example, under Wood’s leadership, Ark bought more than 1.3 million shares of Coinbase at an extremely low price of around $40 a share. At the time, the firm held around 4.7% of Coinbase’s total outstanding shares, the bulk of which was held in its flagship fund, the ARK Innovation ETF. Whether her “buy the dip” policy will pay off in the long run remains to be seen.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.

Source of information: Compiled from CRYPTODAILY by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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