Ark Invest, the investment management firm run by Cathie Wood, has raised $16 million for its new fund, the ARK Crypto Revolutions Fund.
This new fund is registered in both the US and the Cayman Islands and is a private placement, which means it is only available to a small group of friends and family, accredited investors, or institutional clients. The firm started raising money for the fund on March 1st and has sold $7 million in the US and $9 million in the Cayman Islands as of March 15th, according to a filing with the Securities and Exchange Commission.
The move demonstrates that Ark Invest remains bullish on Bitcoin and the cryptocurrency markets. On Friday, her Ark Innovation ETF drew nearly $400 million, the largest increase since April 2021, as the traditional financial sector was shaken by bank failures. Silvergate Bank, a crypto-friendly bank, announced it was voluntarily winding down last week, while regulators shuttered Silicon Valley Bank on Friday, which had hundreds of tech startups as clients. On Sunday, Signature Bank, the only remaining crypto-friendly bank with an instant settlement network for digital payments, was forced to close by the New York Department of Financial Services.
Wood has been vocal about regulators’ misplaced focus on the risks of blockchain technology and cryptocurrency markets, as questions about the stability of the traditional financial sector arise. She tweeted on Tuesday, “While the US banking system was seizing up in response to bank runs threatening regional banks, Bitcoin, Ethereum, and other crypto networks didn’t skip a beat. Instability in the banking system threatened stablecoins, the on-ramps to DeFi, in stark contrast to regulator rhetoric.” She believes that stablecoins, which are pegged to a stable asset like the US dollar, are crucial on-ramps for decentralized finance (DeFi), which allows people to conduct financial transactions without intermediaries like banks.
The ARK Crypto Revolutions Fund will likely focus on cryptocurrency and blockchain-related investments, which have been the focus of Ark Invest’s previous funds. It will be interesting to see how the fund performs given the volatility of the crypto markets and the regulatory uncertainty surrounding them. However, Wood and Ark Invest have demonstrated their willingness to take risks and invest in emerging technologies, so the new fund may be a worthwhile investment opportunity for those who have access to it.
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