Bitcoin is a ‘public good,’ says ARK’s Cathie Wood as spot ETF debuts
Cathie Wood, CEO and CIO of ARK Invest, has described bitcoin as a public good as her company launches one of several spot bitcoin exchange-traded funds (ETFs) following approval from the Securities and Exchange Commission (SEC). Wood explained that bitcoin represents a financial superhighway, referring to it as a layer of the internet that developers didn’t anticipate in the early ’90s. ARK Invest aims to provide this public good without solely focusing on maximizing profits, as reflected in the low fee of 21 basis points (0.21%) charged by the ARK 21Shares Bitcoin ETF ARKB.
The launch of spot ETFs for bitcoin has generated competition among approximately twelve issuers. Fee structures have become a crucial aspect of differentiation. Bitwise Asset Management currently boasts the lowest fee of 0.2% in its fund prospectus, followed closely by ARK 21Shares at 0.21%. Other prominent industry players, such as VanEck, BlackRock, and Fidelity, have set their fees at 0.25%.
In recent trading, bitcoin was up 0.3% at $46,130.
As ARK Invest joins the growing list of companies offering spot bitcoin ETFs, Cathie Wood’s designation of bitcoin as a public good has garnered attention. By highlighting the potential of bitcoin as a financial superhighway and a layer of the internet, Wood emphasizes the value of this digital asset beyond monetary gains.
The decision to charge a low fee of 0.21% for ARK’s ETF showcases the company’s commitment to providing access to bitcoin as a public good rather than purely maximizing profits. The low fee also positions ARK’s offering competitively against other issuers aiming to launch their spot ETFs.
The competition in the spot ETF market for bitcoin is fierce, with multiple issuers vying for market share. Bitwise Asset Management currently leads the pack with a fee of 0.2%, setting the bar for low-cost options. However, ARK 21Shares is not far behind and seeks to attract investors with its slightly higher fee.
Bitcoin’s performance remains significant in today’s trading, with its recent increase of 0.3% bringing its value to $46,130. This consistent growth has further solidified the position of bitcoin as an attractive investment.
With the launch of ARK 21Shares Bitcoin ETF, investors now have another option to gain exposure to bitcoin within the realm of spot ETFs. As more companies enter the market with their offerings, investors have a wider range of choices, both in terms of fees and investment strategies.
Cathie Wood’s characterization of bitcoin as a public good draws attention to the underlying value and potential of this cryptocurrency. As ARK Invest joins the spot bitcoin ETF race, it aims to provide investors with access to this financial superhighway, offering a low-cost option to participate in the potential growth of bitcoin.
