$16.3M raised by Wood’s ARK Invest for Private Crypto Funds

As seen on Wednesday’s SEC filings, Cathie Wood’s Ark Invest raised over $16 million for a new crypto fund, split in two. The ARK Crypto Revolutions US Fund LLC raised $7,281,630 from nine different investors, while ARK Crypto Revolutions Cayman Fund LLC raised $8,993,330 from one.

ARK Invest’s Crypto Funds

Both the domestic and Cayman islands based fund were open for investments since March 1, 2023. To raise the overall target, ARK checked “Indefinite, ” meaning the fund is still open-ended. Among many offerings provided by the Florida-based ARK invest, these are supposed to be private funds and open only for a select number of investors.

The filings were released on Wednesday, just a day before Ark added 301,437 more shares to the ARK Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW) saw an addition of 52,525 shares on the crypto exchange Coinbase with a purchase value of around $20.6 million as per the closing price on Thursday. From the start of 2023, ARK invest can be seen buying Coinbase shares for their ETFs.

ARK Invest, Shifting focus toward Private Crypto

Cathie Wood is known for taking risks and unconventional routes. Wood did the opposite when the whole market seemed to be taking caution. Launched a new private crypto fund. Customarily in these funds, private placements are sold to select groups of friends and family, institutional clients, or acclaimed investors.

Cathie Wood is still bullish on Bitcoin; she previously supported the notion of BTC going to $1 million by 2030. As per reports, Innovation ETF attracted $400 million on Friday. This is its biggest increase since April 2021 and is important after the recent banking crisis.

How are Private Crypto Funds Beneficial

These private crypto funds offer many advantages against the traditional financial market. For instance, they provide great investment opportunities in the innovative and swiftly growing crypto world. Most of them are believed to have the potential to generate higher returns.

Unlike others, they provide greater flexibility and autonomy in investment decisions. They also facilitate quick adaption to current market changes, allowing advantages to be taken from emerging trends.

Dissimilar to traditional finance portfolios, these crypto-focused funds clear the way for diversification. By offering greater accountability and complete transparency against traditional funds, they automatically increase the confidence and trust of the investor.

Explaining on a broader level, these private crypto-focused funds provide an operable alternative to traditional financial markets. The investors are rewarded with access to new and exciting opportunities, minimizing the risk and increasing transparency at the same time.

With the crypto industry’s growth, such private crypto funds are bound to grow, both in quantity and quality. In the future, they are expected to evolve and become an integral part of the investment demographic as they will offer simultaneous benefits to the broader financial market and a simple investor.

Implications for Crypto Industry

Lately, due to the harsh crypto winter and multiple bankruptcies and collapses, the already gray image of the crypto industry has suffered great losses. Recent events tried to bring back the lost excitement for crypto, but still, a lot needs to be done. Positive steps from industry giants are supposed to bring back the lost charm of the crypto industry.