ARK Invest has announced a partnership with Eaglebrook to offer high-net-worth investors access to the top 20 crypto assets through separately managed accounts.
A Planned Collaboration
Cathie Wood-led investment firm ARK Invest has been investing in crypto equities and security since 2015. After seeing a string of expansions throughout this period, Ark Investment has announced that it will collaborate with the digital asset platform Eaglebrook to make both of its actively managed cryptocurrency investment strategies available to the firm’s registered investment advisors. In accordance with the requirements of the collaboration, the strategies would be offered as Separately Managed Accounts.
Cathie Wood, ARK’s founder and CEO, stated:
“The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration among other benefits.”
SMA is defined as a portfolio prepared by a financial advisor or investment firm for a single investor. In the case of ETFs, investors own shares of the fund rather than the underlying securities.
This partnership would help them achieve their goal of expanding their services beyond exchange-traded funds (ETFs).
Ark Crypto Strategies for Wealth Managers
According to the press announcement, Ark Crypto Strategies seeks to capitalize on three major revolutions by investing in blockchain-based tokens. Its crypto approach aims to capitalize on the monetary revolution as well.
Furthermore, it intends to capitalize on the financial and internet revolutions. This is accomplished by managing the top 10 to 20 coins that indicate opportunities relevant to the key topic recognized by Ark. This is reportedly comprised of Decentralized Finance, Web3, Smart Contract Networks, and Infrastructure and Scaling.
In a statement, Yassine Elmandjra, ARK’s crypto asset analyst, revealed that the crypto ecosystem is fundamentally stronger than investors in traditional Asset Management are prepared to recognize based on the price movement over the last year.
“We’re thrilled to be offering actively managed crypto strategies to advisors during a time when, we believe, much of the speculative behavior has died down. We believe this presents an attractive entry point for investors,” said Elmandjra.
Ark Innovation ETF, the company’s premier fund, has been investing in disruptive innovation firms with a focus on long-term capital growth. According to its website, the firm manages $7.946 billion in assets.
In July, Ark sold more than 1.4 million Coinbase (COIN) shares via three of its funds while regulators investigated the firm for alleged insider trading. The company was one of Coinbase’s top shareholders at the time. Ark Investment has also predicted that the price of Bitcoin will reach $1 million by 2030.