The crypto industry is truly experiencing a watershed moment. This week, the U.S. Securities and Exchange Commission (SEC) approved 11 applications for Bitcoin (BTC-USD) exchange-traded products (ETPs), including spot Bitcoin exchange-traded funds (ETFs). Make no mistake, this isn’t just big news for BTC investors. It matters for everyone who cares about crypto.
For weeks, the financial community has stood by and waited for the event poised to spark a crypto boom, wondering if and when these Bitcoin ETFs would approved. Now, investors will be able to pick from many different options, including the ARK 21Shares Bitcoin ETF (NYSE:ARKB) launched by Cathie Wood’s Ark Invest and 21Shares. Indeed, the fund’s website is already providing detailed instructions for investors seeking to buy into the ARKB ETF.
How should investors choose the right ETF to invest in? Are all of these funds created equal? If there’s one thing that Cathie Wood is known for, it’s finding value in beaten-down tech assets. However, her fund recently offloaded over 133,000 shares of Coinbase (NASDAQ:COIN), one of the leading crypto-related stocks. With that in mind, let’s take a look at the ARK 21Shares Bitcoin ETF and break down what investors need to know.
What to Know About the ARK 21Shares Bitcoin ETF
- ARKB starts trading today along with the Fidelity Wise Origin Bitcoin Trust (NYSEMKT:FBTC) and the Invesco Galaxy Bitcoin ETF (NYSEMKT:BTCO), among others.
- The ARKB fund will not charge a management fee for either the first six months or until its assets reach $1 billion.
- Ark Invest made history in 2015 as the “first retail fund manager” to make a Bitcoin investment.
- In a statement, Cathie Wood said the SEC approval and ARKB launch represent a “significant step in providing investors with direct exposure to bitcoin through a regulated and secure vehicle.”
- ARKB prioritizes security and transparency for investors. It offers Bitcoin exposure in a regulated environment with “institutional-grade custodianship.”
- The Bitwise Bitcoin ETF (NYSE:BITB) reportedly has the lowest expense ratio of all funds launched today at 0.20%. However, ARKB is right behind it at 0.21%.
- The custodian of the ARK 21Shares Bitcoin ETF is the Coinbase Custody Trust. Assignees include Jane Street Capital, Macquarie Capital and Virtu Americas, per Dailycoin.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
