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Author: Alan LittleDate: 2021-09-13

ARK Next Generation Internet ETF (ARKW) eyeing Canadian cryptocurrency ETFs

ARK Next Generation Internet ETF (ARKW) considers Canadian cryptocurrency ETFs after GBTC shares lose momentum, evidenced by a 22% drop so far this year.

ARK Next Generation Internet ETF (ARKW), a fintech-focused initiative launched by Ark Investment Management, invests in companies that drive, among others, e-commerce, cloud computing, artificial intelligence (AI), crypto blockchains, and peer-to-peer (P2P) digital operations.

Recently, Ark Investment Management made changes to its filing with the US Securities and Exchange Commission.

These amendments allow ARKW to invest in Canadian cryptocurrency ETFs.

The move sparked rumours that ARKW is looking to swap GBTC for Canadian crypto ETFs, which directs a spotlight on GBTC’s poor performance so far this year.

GBTC, the stock ticker for the Bitcoin Investment Trust managed by Grayscale, enables investors to trade Bitcoin on the stock market.

Since the start of 2021, GBTC shares have dropped by 22%.

Reports discussed how GBTC remained under pressure and in the red, without showing any significant recovery to boost confidence among investors.

Financial analysts were in two minds about GBTC’s future performance after a 16,000 BTC-valued share unlocking in July 2021.

Some maintained that the share unlocking would result in bullish potentials, taking GBTC to unprecedented highs.

Others, however, including strategists at JP Morgan, believed that the event would trigger the sale of GBTC shares, confirming the ongoing downtrend.

Nikolaos Panigirtzoglou, a lead analyst at JP Morgan, said: “Despite this week’s correction, we are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally. So despite some improvement, our signals remain overall bearish.”

He proved to be right as GBTC shares once again closed in the red on Friday, hovering at just over $36 apiece.

The question is, will Ark Investment Management’s move to eye Canadian crypto ETFs as a more viable option instigate similar moves from other GBTC-oriented ETFs?

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