Bitcoin lovers have been searching for a way to safely invest in the enormous potential they see in the crypto currency. Buying actual bitcoins has proven dangerous, to say the least. In theory, an exchange-traded fund, or ETF, that mirrors the price of Bitcoin would offer a somewhat safer bitcoin invest or not. But no Bitcoin ETFs have been created.
An effort by the twins Cameron and Tyle Winklevoss to do just that has been waiting two years to receive approval from regulators. The Securities and Exchange Commission is still trying to figure out how to define and oversee Bitcoin. This week, ARK Investment Management announced a full embrace of the digital currency. Current prices present an attractive entry point for our investors,” Cathie Wood, ARK’s founder and chief investment officer, said in a statement. But before taking a leap, it would be smart to read the fine print of the ETF, which trades under the ticker symbol “ARKW.
First, it’s not a pure play on Bitcoin. Even though it announced the Bitcoin play, the ETF is actually an investment in what it calls disruptive technologies. Second, the ARK ETF is not actually investing directly in bitcoins. It’s buying shares of something called the Bitcoin Investment Trust.