ARKD Profile
The EA Series Trust - ARK 21Shares Blockchain and Digital Economy Innovation ETF (ticker: ARKD) is a specialized exchange-traded fund that strategically allocates its assets across various sectors linked to blockchain technology and the digital economy. This actively managed fund invests primarily in Bitcoin (BTC) futures and equity positions related to the blockchain industry. It gains exposure to BTC futures through its affiliated ETF, the ARK 21Shares Active Bitcoin Futures Strategy ETF (ticker: ARKA), or through a Cayman Islands subsidiary that engages in standardized BTC futures contracts. These contracts are typically rolled at times calculated to maximize roll yield, optimizing returns from the futures positions.
In addition to its BTC futures investments, the ARKD ETF diversifies its portfolio with equities from companies that are deeply involved in blockchain innovation and the digital economy. This includes firms specializing in blockchain development, digital payments, online brokerage services, digital asset infrastructure, and semiconductor technology. The ETF's equity investments also extend to companies that drive technological advancements within the digital economy, aiming to capture growth across these burgeoning sectors.
The fund's investment approach combines both qualitative and quantitative analysis to determine allocation percentages. By utilizing these methods, ARKD aims to balance its investments across various asset types, adjusting its strategy to adapt to changing market conditions. The flexibility of this approach allows the fund to dynamically respond to shifts in the attractiveness of different asset classes, ensuring a well-calibrated exposure to emerging opportunities in the blockchain and digital economy sectors.
To maintain liquidity and manage collateral requirements, the ETF also holds short-term cash instruments. This aspect of the fund's strategy ensures that it has sufficient liquidity to meet any potential needs while optimizing the performance of its investments. By allowing up to 80% exposure to BTC futures or other assets, the ARKD ETF is designed to navigate complex market environments, leveraging its unique investment strategy to capitalize on the growth of blockchain and digital economy innovations.
|
