In an interview, Tom Staudt, President and COO of ARK Invest, declared Bitcoin as a “public good” to which all investors should have access. This announcement comes as ARK Invest launches its first Bitcoin exchange-traded fund (ETF), following the U.S. Securities and Exchange Commission’s (SEC) approval of rule changes allowing the creation of Bitcoin ETFs in the U.S.
Staudt’s statement underscores the democratization of the cryptocurrency asset class, aiming to eliminate any remaining barriers that might deter investors. These barriers include custody, gatekeeping, regulatory, and cost concerns.
ARK Invest’s new ETF, created in partnership with 21Shares, entered the market with a fee of 0.21%, making it one of the most affordable offerings in the newly formed market. The fund also waived fees for investors for the first six months.
The ARK 21Shares Bitcoin ETF is among six funds initially waiving fees, including offerings from Bitwise, Fidelity Wise Origin, WisdomTree, Invesco Galaxy, and Valkyrie. Only Bitwise’s offering will be cheaper for investors, at 0.2% once fees are introduced.
ARK Invest’s President Believes Bitcoin Has a Dual Role in Portfolio Management
Staudt has clarified that the primary purpose of the Bitcoin investment tool is not to generate maximum profits. Instead, it serves as a gateway to familiarize new investors with the world of cryptocurrencies. He believes that this aspect is of utmost importance. Staudt further highlighted that Bitcoin has evolved into a public commodity, and he is committed to ensuring that all investors can access it.
In a discussion about the role of Bitcoin in portfolio management and diversification, Staudt highlighted the dual function of cryptocurrency. He asserted that it not only acts as a safeguard against inflation but also as a risk asset, offering the potential for increased returns.
The SEC’s approval of Bitcoin ETFs marks a significant milestone for the cryptocurrency industry, opening the door for many new investors who don’t want to take the extra steps involved in buying actual Bitcoin.
Gary Gensler, the agency’s chairman, warned investors to remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto. In conclusion, the launch of Bitcoin ETFs, such as the one by ARK Invest, signifies a new era in the cryptocurrency market, making Bitcoin a “public good” accessible to all investors.
