Ark Invest Floats New Crypto Fund After Raising $16M

Ark invest continued to maintain its bullish stance on the cryptocurrency market despite the uncertainty in the industry and the broader financial market, the investment manager has now raised $16 million for a new crypto fund.

According to a March 15 filing with the United States Securities and Exchange Commission (SEC), the asset manager has launched a new crypto fund dubbed “ARK Crypto Revolutions Fund.” The fund is a private fund registered in the United States and the Cayman Islands.

As per the details of the filings, ARK Crypto Revolutions U.S Fund LLC secured over $7 million from nine investors while ARK Crypto Revolutions Cayman Fund LLC raised about $9 million from one investor after it opened both funds for investment on March 1.

Additionally, the sec filing revealed that the fund is marked indefinite making it open-ended and open to additional sales in the future. However, since ARK Crypto Revolutions is not open to the general public but only available to a limited number of people, it will remain smaller in comparison to other funds from the investment manager.

Interestingly, the sec filing is coming days after Ark Invest went on a buying spree for Coinbase stock (COIN). The investment manager recently added 353,000 shares across two of its funds purchased for about $20.5 million. After its latest acquisition, Ark Invest now holds 3.8% of the American publicly traded exchange. 

Ark’s Cathie Wood Shares Thoughts on the US Bank Collapse

Cathie Wood in a recent Twitter thread has blamed the collapse of major U.S crypto-friendly banks including Silvergate, Silicon Valley Bank (SVB), and Signature on Fed policy failure and funding drought that made deposits leave the U.S banking system.

According to Cathie, many banks assumed that the regulators will keep the interest rates down for an extended period of time and that deposits will continue to increase. 

However, this wasn’t the case as the Fed hiked the interest rates, and startups began draining their deposit accounts since venture funding dried up.

Furthermore, Cathie, who has been a critic of the regulator’s misplaced focus on the crypto industry has described Bitcoin (BTC) as insurance adding that while bank runs have threatened the existence of regional banks cryptocurrencies like Bitcoin remained strong.