Cathie Wood’s Ark Launches Private Crypto Fund, Raises $16.3M – Another Bull Market Imminent?
Cathie Wood’s Ark Investment has raised more than $16 million for two new private crypto funds as digital assets continue to surge amid banking concerns.
According to recent filings with the US Securities and Exchange Commission, Ark Invest has raised $16.3 million for a crypto fund that is split between a domestic and a Cayman Islands-based version.
ARK Crypto Revolutions US Fund LLC raised $7,281,630 from nine investors, while ARK Crypto Revolutions Cayman Fund LLC raised nearly $9 million from one backer. The filings show that both funds are open for investments starting this month.
For the overall objective, Ark ticked “Undetermined”, which means the fund is open. These two new funds are private and only open to a small number of investors.
It’s worth noting that Ark Invest has been bullish on crypto firms despite the recent crypto meltdown and increasing regulatory scrutiny. More specifically, the fund has been interested in shares in the large US-based cryptocurrency exchange Coinbase.
Just last week, Cathie Wood added 301,437 shares of Coinbase to the ARK Innovation ETF (ARKK) and 52,525 shares to the Next Generation Internet ETF (ARKW). In total, the company spent $20.6 million for more than 350,000 shares.
The move came after the fund had bought 333,637 shares in January. With this latest purchase, Ark owns 9.9 million Coinbase shares, or about 3.8% of the company’s shares.
Cathie Wood expects Bitcoin to reach $500,000 by 2030
In 2020, Wood made headlines with an infamous prediction that Bitcoin would reach $500,000 by 2030. Despite the recent crypto downturn that caused some high-profile digital asset companies to collapse, the investor still stands by her prediction.
Back in February, Wood reiterated that she expects Bitcoin to reach $500,000. “Yes, we’re a little higher than that in our bearish case for 2030,” she said, noting that her bullish case is much higher.
Earlier this month, she also praised Bitcoin for being the most decentralized and transparent blockchain in the crypto space. She also drew comparisons to disgraced FTX founder Sam Bankman-Fried, saying there are obvious reasons why he preferred other blockchains over Bitcoin.
“Sam Bankman-Fried didn’t like Bitcoin. Why didn’t he like it? Because it’s completely decentralized, transparent, he couldn’t control it,” Wood said in the interview.
She claimed that the firms that went under during the crypto market downturn last year, including FTX, crypto lender Celsius and hedge fund Three Arrows Capital (3AC), were all “completely opaque and centralized”.
“The blockchains, whether you’re talking about Bitcoin or Ethereum and many others, they didn’t skip a beat. Transactions didn’t stop. And I think that’s given us a lot of confidence that they’re actually on the right track.”