Ark Investment Raises $16 Million from Crypto Funds

Cathie Wood, who works with Ark Investment, has a reputation for placing some of the riskiest bets in the cryptocurrency market. Cathie Wood has been a consistent investor in cryptocurrency startups such as Coinbase, even though the market has been volatile since 2022.

In yet another of these recent developments, ARK Investment Management LLC successfully gathered an astounding sixteen million dollars from various investors to establish a new fund that will focus on cryptocurrency investments.

The ARK Crypto Revolutions Cayman Fund LLC got funding of close to $9 million from a single investor, as shown by the documents presented to the United States SEC on Wednesday, March 15.

In a similar manner, ARK Crypto Revolutions US Fund LLC, which was formed in Delaware, successfully secured an additional $7 million from nine registered investors.

The “indefinite” overall aim of the fund denotes that the fund will continue to have unbounded potential. On the other hand, in contrast to other offerings made by funds domiciled in Florida, these firms are private and only accept a limited number of investors.

The recent filings with the US SEC came just a few days after Ark Invest substantially acquired 301,437 Coinbase shares for the Ark Innovation Exchange Traded Fund (ETF).

From the beginning of 2023, the company has been consistently purchasing COIN shares for its exchange-traded fund, as was previously mentioned.

Cathie Wood’s company’s outlook on the future of Bitcoin has been highly optimistic. Early this year, Ark Invest made a bold proclamation that the price of a single Bitcoin will reach one million dollars within the next ten years.

 

Cathie Wood on the Financial Crisis in the United States

A big crisis broke out on Wall Street a week ago, and as a result, three of the largest banks in the United States — Silvergate, Silicon Valley Bank, and Signature – announced that they would be closing overnight.

On the other hand, a big rebound at the beginning of this week helped Bitcoin and the wider cryptocurrency market emerge stronger.

Cathie Wood, who works with Ark Invest, said cryptocurrency had become a secure haven as the banking crisis developed.

She went on to blame the failure of Fed policies for the collapse of the financial institutions. Cathie Wood mentioned the following in her most recent discussion (1) on Twitter:

“SVB and Signature did not file for bankruptcy because of Crypto’s actions. In my opinion, the Fed’s policy was the fundamental source of the problem. The United States banking industry lost deposits due to a lack of venture capital funding and increased returns on money market funds.

She went on to say that banks & regulators failed to persuade the Fed that a catastrophe was imminent. Cathie Wood argues that they failed to assess the mismatch between their assets and liabilities.

Wood emphasized that this wouldn’t have been possible within the ecosystem of crypto assets because it is decentralized, auditable, accessible, and has over-collateralization.

“In our opinion, cryptocurrency offers a solution to the existing financial system’s key areas of weakness, the opacity, and the legislative blunders that have been made.”

As a result of being made the victim of policy blunders, the cryptocurrency industry will go abroad, which will deprive the United States of one of the most significant innovations in human history, she warned.

Image source: Ark Invest (1.1)

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