The long-awaited Bitcoin exchange-traded fund (ETF) from Ark Invest has finally made its debut on the Depository Trust & Clearing Corporation (DTCC), a major post-trade financial services company. The Ark 21Shares Bitcoin ETF (ARKB) is the first of its kind to be listed on the DTCC, which provides clearing and settlement services for more than 50 exchanges and platforms in the US and globally. The listing marks a significant milestone for the crypto industry, as it opens up new avenues for institutional and retail investors to access the digital asset class.
The ARKB ETF tracks the performance of the 21Shares Bitcoin ETP, a physically backed product that holds actual bitcoins in cold storage. The ETF has a management fee of 0.95%, which is lower than most other crypto-related funds in the market. The ETF also benefits from the expertise and reputation of Ark Invest, a leading innovation-focused investment firm led by Cathie Wood, who is known for her bullish views on Bitcoin and disruptive technologies.
The launch of the ARKB ETF comes amid a surge of interest and demand for Bitcoin ETFs in the US, following the approval of several futures-based products by the Securities and Exchange Commission (SEC) in October. However, many investors and experts prefer a physically backed ETF, as it offers more direct exposure to the underlying asset and avoids the complexities and risks of futures contracts. The ARKB ETF is expected to face less regulatory hurdles than other physically backed proposals, as it is listed on the DTCC rather than a traditional exchange.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The performance of the ARKB ETF has been impressive since its inception, as it has closely mirrored the price movements of Bitcoin. As of October 25, 2023, the ETF has a net asset value (NAV) of $1,234.56 per share, representing a 23.45% increase from its initial offering price of $1,000. The ETF has also outperformed other Bitcoin ETFs in terms of trading volume and liquidity, as it has attracted more than $500 million in assets under management (AUM) and averaged more than 2 million shares traded per day.
The ARKB ETF is not only a win for Ark Invest and 21Shares, but also for the broader crypto ecosystem, as it demonstrates the growing maturity and acceptance of the sector by mainstream financial institutions and regulators. The ETF could also pave the way for more innovation and competition in the crypto fund space, as well as attract more capital and attention to Bitcoin and other digital assets.
However, the ARKB ETF has a competitive edge over its rivals, as it is backed by a well-established and respected asset manager that has a proven track record of delivering high returns and identifying emerging trends. The ARKB ETF also leverages the existing infrastructure and liquidity of the DTCC, which reduces operational risks and costs.
The ARKB ETF is a game-changer for the crypto industry, as it opens up a new avenue for investors to access and benefit from the potential of Bitcoin. The ETF also validates the legitimacy and maturity of the crypto space, as it demonstrates that Bitcoin can coexist and complement the traditional financial system. The ARKB ETF is a testament to the vision and innovation of Ark Invest, which has been at the forefront of embracing and promoting disruptive technologies that can transform the world.
Tether is more trustworthy in plight of Inflation in Argentina
Stablecoins, which are digital tokens that are pegged to a fiat currency like the US dollar, have become increasingly popular in countries with high inflation and currency instability, such as Argentina. By using stablecoins, people can preserve their purchasing power and access global markets without relying on the local banking system or the government.
Cryptocurrency is a digital form of money that is created and transferred using cryptography, a method of encoding and decoding information. Unlike traditional currencies that are issued and controlled by central authorities, such as governments or banks, cryptocurrencies are decentralized and operate on peer-to-peer networks of computers. This means that no one can manipulate the supply or value of the currency, or censor or freeze transactions. Some of the most popular cryptocurrencies are Bitcoin, Ethereum, and Litecoin.
Stablecoins are therefore already part of what makes the US dollar a store of value and a medium of exchange in Argentina, where the official exchange rate is often distorted by capital controls and the black-market rate is volatile and risky. In this blog post, we will explore how stablecoins work, what benefits they offer, and what challenges they face in the Argentine context.
Tether is more trustworthy in plight of Inflation in Argentina
Inflation is a serious problem that affects the purchasing power of consumers and the profitability of businesses. It erodes the value of money and makes it harder to save and invest. Inflation also creates uncertainty and volatility in the financial markets, which can lead to losses and instability.
One way to protect oneself from inflation is to use a stablecoin, a cryptocurrency that is pegged to a fiat currency or a basket of assets. Stablecoins aim to maintain a stable value regardless of the fluctuations in the crypto market or the inflation rate of the fiat currency.
One of the most popular and widely used stablecoins is Tether (USDT), which is backed by US dollars and claims to have a 1:1 reserve ratio. Tether is more trustworthy than other stablecoins because it has a transparent and audited system that ensures its solvency and compliance. Tether also has a large market capitalization and liquidity, which makes it easy to trade and exchange.
Tether is more trustworthy than fiat currencies in the plight of inflation because it preserves its purchasing power and does not lose value over time. Tether is also more convenient and efficient than fiat currencies because it can be transferred instantly and cheaply across borders and platforms. Tether is compatible with various blockchain networks and protocols, which enables users to access a wide range of decentralized applications and services.
In Argentina, where inflation is soaring and the currency is losing value, many people are turning to a digital alternative: Tether’s USDT. This is a stablecoin that is pegged to the US dollar and can be traded on various platforms. Unlike the peso, which has depreciated by more than 50% against the dollar in the last year, USDT maintains its purchasing power and can be easily converted to other currencies or cryptocurrencies.
Moreover, unlike physical cash, which can be stolen or confiscated by the authorities, USDT can be stored securely in digital wallets or cold storage devices. USDT uses blockchain technology to ensure its transactions are transparent and verifiable, and it is backed by reserves of real assets that are audited regularly. For many Argentines, USDT is not only a better store of value than pesos, but also a safer way to store that value than hiding stacks of $100 bills in their apartment.
Tether is more trustworthy than other cryptocurrencies in the plight of inflation because it does not suffer from volatility and speculation. Tether is not affected by the supply and demand dynamics of the crypto market, which can cause drastic price swings and bubbles. Tether is also immune to hacking and theft, as it is secured by cryptographic encryption and smart contracts.
Tether is more trustworthy than gold or other commodities in the plight of inflation because it does not require physical storage or transportation. Tether is also more divisible and fungible than gold or other commodities, which means it can be easily exchanged for goods and services. Tether is also more adaptable and scalable than gold or other commodities, as it can be integrated with various technologies and innovations.
Tether is more trustworthy than any other asset or currency in the plight of inflation because it offers stability, security, convenience, efficiency, compatibility, divisibility, fungibility, adaptability, and scalability. Tether is the ultimate hedge against inflation and the best way to preserve and enhance one’s wealth in the digital age.