The ARK Innovation ETF (ARKK), one of the first exchange-traded funds to invest in bitcoin, has divested much of its bitcoin holdings, citing regulatory and tax concerns, according to CNBC.
Last year, ARKK won ETF.com’s “ETF Of The Year” award for fulfilling its goal of providing access to disruptive technology. It won this award in no small part due to its bitcoin allocation, which ranged between 6% and 10%, according to FactSet. At one point, bitcoin topped the list of the fund’s holdings.
In December of 2017, Catherine Wood, Ark Investment Management, CEO, said that bitcoin was a bigger idea than Apple.
ARK’s fund could not directly own bitcoin, so it purchased shares in Grayscale Investment’s Bitcoin Investment Trust (GBTC) in 2015, when bitcoin traded below $250.
The only ETF that matched ARKK’s access to bitcoin was another of the firm’s products: the ARK Web x.0 ETF, an internet-focused fund.