Ark Invest, a New York-based investment firm, wants to launch a venture fund for companies involved in crypto and blockchain technologies. It will structure the new fund as an interval fund. This means Ark Invest will conduct quarterly repurchase offers for 5% of the fund’s shares.
According to the disclosure, the company will fund public and privately placed or restricted securities. It will have a minimum initial investment of $1,000. Ark Invest wants to work with companies that are involved in revolutionizing genomics and transforming automation, energy usage, artificial intelligence and financial technology, as well as Web3.0. It includes companies and organizations that develop, use or rely on blockchain technologies. The fund is likely to expand towards cryptocurrencies, indirectly, through investment in the Grayscale Bitcoin Trust (GBTC).
James Seyffart, a Bloomberg Intelligence analyst, tweeted that the interval fund structure makes sense for Ark Invest’s investment strategy. It can buy semi-private investments, control inflows and outflows, and close the fund. Moreover, it will allow the investment firm to work with smaller businesses and worry less about the liquidity risk.
Cathie Wood, the founder and CEO of Ark Invest, had said in November 2020 that the popular crypto bitcoin can reach $500,000 in the long-term. Though bullish with the idea, she is enthusiastic about crypto technologies. Wood believes DeFi will usurp the role of most financial services companies today.