ARK Invest To Offer Crypto Separately Managed Accounts (SMAs) to Financial Advisors

Please fol­low and like us:
Pin Share

On Octo­ber 03, Cathie Wood’s ARK Invest announced a col­lab­o­ra­tion with Eagle­brook Advi­sors to offer its first cryp­to sep­a­rate­ly man­aged accounts (SMAs) to finan­cial advi­sors and wealth managers.

Through this joint ven­ture, reg­is­tered clients of the invest­ment advi­sors will be able to use two dif­fer­ent ARK-man­aged invest­ment strate­gies: One focused on “Cryp­toas­sets” and anoth­er for “Cryp­tocur­ren­cy” investments.

A New Product For Crypto Enthusiasts

Cathie Wood, the founder, CEO, and CIO of ARK said they have been active­ly work­ing in the cryp­to space since their found­ing in 2014 to offer their clients cryp­tocur­ren­cy-relat­ed equi­ty and secu­ri­ties invest­ment services.

There­fore, this alliance between Ark and Eagle­brook will expand their reach in the cryp­to ecosys­tem, offer­ing new “active­ly man­aged cryp­to strate­gies to the wealth man­age­ment industry.”

Wood fur­ther empha­sized that the strate­gies will be inde­pen­dent­ly man­aged through sep­a­rate accounts to meet the needs of all the par­ties involved, allow­ing them to diver­si­fy their port­fo­lios gain­ing expo­sure to dig­i­tal assets.

“The strate­gies will be sep­a­rate­ly man­aged accounts (SMAs) designed to meet the needs of finan­cial advi­sors, wealth man­agers, and their clients by offer­ing direct own­er­ship, low min­i­mums, and port­fo­lio report­ing inte­gra­tion amongst oth­er benefits.”

Christo­pher King, Founder and CEO of Eagle­brook Advi­sors explained that ARK will help Eagle­brook dri­ve the cryp­to industry’s growth by offer­ing easy access to insti­tu­tion­al, trust-build­ing cryp­tocur­ren­cy strate­gies for dig­i­tal assets.

“Our part­ner­ship with ARK will dri­ve this indus­try for­ward and deliv­er insti­tu­tion­al access to active­ly man­aged cryp­to strate­gies to the wealth man­age­ment market.”

How will ARK’s Investment Strategies Work?

Accord­ing to the state­ment, both strate­gies (the ARK Cryp­tocur­ren­cy Strat­e­gy and the ARK Cryp­toas­set Strat­e­gy) will work inde­pen­dent­ly from one anoth­er, focus­ing on dif­fer­ent invest­ments. This means that each SMA’s risk expo­sure (and, of course, the prof­it oppor­tu­ni­ty) could change accord­ing to the circumstances.

The ARK Cryp­tocur­ren­cy Strat­e­gy will cater to investors seek­ing a “high con­vic­tion port­fo­lio,” with invest­ments pri­mar­i­ly in top cryp­tocur­ren­cies such as Bit­coin (BTC) and Ethereum (ETH).

On the oth­er hand, the ARK Cryp­toas­set Strat­e­gy will be a bit riski­er, as it will include between 10 to 20 alt­coins focused on Smart Con­tract Net­works, Decen­tral­ized Finance (DeFis), Web3, and Infra­struc­ture and Scaling.

Yas­sine Elmand­jra, the cryp­to asset ana­lyst at ARK, not­ed that ARK is pleased to offer investors these strate­gies at a time when “spec­u­la­tive behav­ior [in the cryp­to mar­ket] has calmed down.”

Ark Invest’s Previous Moves In The Crypto-Verse

Cur­rent­ly, Ark Invest man­ages eight ETFs in the Unit­ed States. How­ev­er, its dream Bit­coin ETF has been reject­ed by the SEC over con­cerns of not being able to pro­tect investors from mar­ket spec­u­la­tions. As of today, The Unit­ed States has not approved a cryp­to ETF focused on the spot market.

The ARK Inno­va­tion ETF (ARKK) is quite pop­u­lar among cryp­to enthu­si­asts for its heavy expo­sure to cryp­to. Cathie Wood’s com­pa­ny has invest­ed in some cryp­to stocks like Twit­ter, Coin­base, and Tes­la along with over 8 mil­lion shares in Grayscale Bit­coin Trust (GBTC).

The firm is bull­ish long-time bull­ish on cryp­to —per­haps way too much.  Back in April of 2022, Cathie Wood said Bit­coin could reach $1 mil­lion per coin in 2030. To achieve such a high price, investors must tru­ly see the val­ue of Bit­coin and real­lo­cate a major part of their assets:

“We don’t need much. All we need is that 2.5% of all assets is allo­cat­ed in Bitcoin,”

Seems like Wood is doing her part to make that dream come true.

SPECIAL OFFER (Spon­sored)

Binance Free $100 (Exclu­sive): Use this link to reg­is­ter and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Spe­cial Offer: Use this link to reg­is­ter & enter POTATO50 code to receive up to $7,000 on your deposits.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *