Make Kitco Your Homepage

NYDIG and ARK investments remain dedicated to crypto despite the struggles of 2022

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - New York Digital Investment Group (NYDIG) appears to be undeterred by 2022’s widespread pullback in cryptocurrencies as a recent report released by the company indicates that its crypto balances hit a new record high during Q3. 

“NYDIG's Bitcoin balances hit all-time highs in Q3, up almost 100% year-over-year, and revenue is up 130% through Q2, with another increase when the firm closes its books on Q3,” wrote the company in its news release.  

In addition, a new filing with the U.S. Securities and Exchange Commission (SEC) shows that the NYDIG Institutional Bitcoin Fund LP has raised a total of $719.9 million to date from 59 investors, with just over $28 million in investments coming in since its last fundraise in 2021 when the total investments reached $691 million. 

The filing states that the SEC has “not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.” 

NYDIG describes itself as a “Bitcoin company” that offers cold-storage custody solutions to institutional investors and high-net-worth individuals. The company is also focused on facilitating the adoption of the Lightning Network (LN), a layer-two scaling solution for Bitcoin. 

“Now it’s time for Lightning,” NYDIG’s new CEO Tejas Shah said in the press release. “We are excited to deliver next-generation wallet and payment solutions – faster, cheaper, safer – to our expanding set of enterprise technology clients."

This emphasis on developing the Lightning Network is becoming a popular point of focus for firms interested in the crypto space, with business intelligence firm MicroStrategy recently posting jobs for LN developers. 


Global banks only have a 0.01% exposure to crypto, according to the BIS

Ark Invest partners with Eaglebrook to increase access to its crypto funds

Cathie Wood's investment firm, ARK Investment Management LLC, has announced a new collaboration with separately managed account (SMA) provider Eaglebrook Advisors to make the two ARK crypto funds available to registered investment advisors. 

“Together, ARK and Eaglebrook are making the ARK Cryptocurrency Strategy and the ARK Cryptoasset Strategy, two actively managed crypto strategies, available as separately managed accounts for the clients of registered investment advisors,” the press release said.

The ‘Cryptocurrency Strategy’ portfolio is an “actively managed, high conviction portfolio invested primarily in Bitcoin and Ether.” 

ARK's Cryptoasset Strategy is designed to capitalize on the internet and financial revolutions by actively managing 10-20 tokens “that represent opportunities relevant to major themes identified by ARK, including Smart Contract Networks, Decentralized Finance, Web3, and Infrastructure & Scaling.”

“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 amongst other benefits,” according to Cathie Wood, ARK’s founder, CEO and CIO. “Advisors can differentiate themselves and add to a client's diversification by adding this new asset class to their portfolios.” 
 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.