The ARK Innovation ETF (ARKK) experienced a significant surge of 5.02% in intraday trading on Wednesday, as investors reacted positively to CEO Cathie Wood's announcement regarding the company's plans to tokenize its funds.
Speaking at the Digital Asset Summit in New York, Wood revealed Ark Invest's ambition to bring its funds on-chain through tokenization, signaling a strategic push into digital assets. She specifically mentioned the potential tokenization of the Venture Fund (ARKVX) and Digital Asset Revolution Fund, stating, "We think tokenization is going to be huge." This move aligns with industry projections that tokenization could unlock trillions of dollars in traditional and alternative assets by the end of the decade.
While acknowledging the regulatory challenges in the U.S. regarding security tokens, Wood expressed optimism about the evolving regulatory landscape. She noted, "I think the regulations are starting to open up in a way that will allow us to do that. So we'd like to seize the moment." This forward-thinking approach appears to have resonated with investors, driving up the value of the ARK Innovation ETF. However, Wood also cautioned about the risks associated with meme coins, predicting significant price declines in some of these speculative assets.
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