An Alternative Way to Trade and Invest in Bitcoin

Even if you do not quite understand cryptocurrency or how it works, with all of the buzz surrounding its increasing revenue, you probably have thought about trying to ride the digital currency investment wave.

Bitcoin is arguably the most popular cryptocurrency system out right now. As the price of one Bitcoin surges to almost $3,000 USD, its private trust Grayscale Bitcoin Investment Trust (GBTC) has been seen anywhere between $400 and $500 per share. With such a high price ticket, beginner investors and traders may feel as though they are being left behind on this wave. To add insult to injury, GBTC cannot be traded with some brokers such as Robinhood, which offer commission free trading.

Fortunately, there is a second fund that invests in Bitcoin. Ark Investment Management has four ETFs, two of them, ARK Web x.0 (ARKW) and ARK Innovation (ARKK) are invested in GBTC. Each currently holds over 7,000 shares of Bitcoin Investment Trust which is enough to make an impact on their stock when GBTC’s price fluctuates. With ARKW($35.23) and ARKK ($28.83) having a much lower stock price than GBTC, they are definitely more attractive alternatives for beginner traders than GBTC. Both ARKW and ARKK are available for trading on Robinhood as well.

So what is Ark Investment Management? They are an exchange traded fund (ETF) that prides themselves on investing in innovators of technology. An ETF is a fund that owns assets in a company or companies and then divides up those assets into shares in their company. So ARK Investments invests in different companies and then sells the shares of their company on the stock market. Although you do not directly own any of the investments, you still get to reap the profits of the shares you bought from the ETF. So if GBTC’s stock price goes up in value, then the shares that ARK owns in GBTC goes up in value. This will cause ARKW and ARKK’s stock price, in turn, to go up in value. Unlike GBTC, ARKW and ARKK have other big name holdings in tech. Their top 10 holdings include big name tech companies such as Amazon, Tesla and Facebook.

Looking at the stats on both ARKW(+12.85)  and ARKK(+9.24), both have been in an upward trend withing the past year. I personally trade ARKW often and I have had great returns over the past couple of months. During the past month, the return rate for ARKW was 10.30% and and astonishing 57.42% over the past year. These rates make for a very attractive stock for day traders and investors alike.

 

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