True to its name, the so-called Disruptive Innovation exchange traded fund will be the first ETF to add bitcoins, a form of cryptocurrency, to its portfolio.
According to a recent press release, the ARK Web x.0 ETF (NYSEArca: ARKW), an actively managed ETF that focuses on disruptive companies that help transform the market, is the first ETF to invest in bitcoins after the portfolio manager acquired publicly traded shares of Grayscale’s Bitcoin Investment Trust (OTCQX: GBTC).
However, it should be noted that GBTC only makes up 0.3% of ARKW’s overall portfolio and is the smallest component of the ETF’s 40 holdings as of September 14.
Fund provider ARK Invest believes that bitcoin, a form of digital currency that has been growing in popularity as an alternative to traditional paper currencies, could disrupt the $500 billion intermediary payment platform industry, which covers credit cards, electronic payments and remittances. The new form of currency has already gained wide acceptance from major companies, such as Dell (NasdaqGS: DELL), Overstock (NasdaqGS: OSTK) and Expedia (NasdaqGS: EXPE), among others.
“We’re believers in bitcoin, the currency, and Bitcoin, the technology platform. We also believe that current prices present an attractive entry point for our investors,” said ARK’s Founder and Chief Investment Officer Cathie Wood. “Bitcoin is a disruptive innovation and while still in its infancy, interest has been growing rapidly in Silicon Valley, Wall Street and Washington, D.C.”
Bitcoin gained widespread attention in late 2013 after surging above $1,100. However, the cryptocurrency has since fallen to $231.0.
ARKW tracks a number of companies that benefit from increase use of shared technology, infrastructure and services in cloud computing, big data, social media, internet, devices and gateways, e-commerce, media ecosystems, health care, sharing economy, point of sale, telecom and cryptocurrencies.