Tag: INVESTMENT STRATEGY

Boyaa Interactive Advances into Cryptocurrency with a $100 Million Acquisition Mandate

by Blockchain News

Boyaa Interactive International Limited, a distinguished online card and board game developer based in Hong Kong, is advancing into the cryptocurrency realm. Since its founding in 2004 and subsequent listing on the Hong Kong Stock Exchange in 2013, Boyaa has established a robust presence in the gaming industry, offering popular titles like Texas Hold’em and Chinese Chess​​​​.

In a significant strategic pivot, Boyaa Interactive plans to invest up to $100 million in cryptocurrencies. This decision is part of the company’s broader strategy to integrate its business model with the evolving Web3 landscape. Emphasizing the importance of digital asset management, Boyaa’s Board views this move as a pivotal step towards future growth and innovation in the digital economy.

The Board has proposed an Acquisition Mandate, pending shareholder approval, to facilitate cryptocurrency acquisitions over the next 12 months. The focus will primarily be on acquiring mainstream cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), along with a certain allocation for stablecoins like Tether USD (USDT) and USD Coin (USDC). This approach is designed to align with the company’s asset allocation strategy and its push into Web3 technologies​​.

Boyaa’s financial trajectory, as evidenced by its positive annual results in both 2020 and 2022, positions it well for this venture. The company has shown a considerable increase in net profit, indicating a stable financial base to support its cryptocurrency endeavors. Despite the potential benefits, the Board acknowledges the risks associated with the volatile cryptocurrency market. Investments will be executed on regulated platforms, and the company has established a specialized supervisory team to ensure compliance and manage risks​​​​.

Boyaa Interactive’s move into cryptocurrency underscores a strategic alignment with current digital asset trends and the growing influence of Web3 in the gaming sector. While navigating the inherent risks of the cryptocurrency market, Boyaa’s well-established financial foundation and strategic approach suggest a calculated and promising venture into the digital asset space.

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ARK Invest Intensifies Investment in Robinhood

by Blockchain News

Cathie Wood, the renowned Bitcoin advocate and founder of ARK Invest, has recently intensified her firm’s investment in the cryptocurrency-friendly trading platform Robinhood (HOOD). ARK Invest made a significant move by acquiring 1.1 million Robinhood shares on November 8, amounting to an investment of over $9.5 million in a single day.

This acquisition involved three of ARK’s innovation-focused exchange-traded funds (ETFs): the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). The ARKK fund led the charge, purchasing 888,500 shares of HOOD, which constituted 78% of the total shares bought that day.

Prior to this substantial purchase, ARK had been steadily buying Robinhood shares, albeit in smaller quantities compared to the latest transaction. For instance, the day before, ARK had acquired 259,628 shares for its ARKW fund, followed by another purchase of 197,285 shares on October 23.

This aggressive investment strategy coincided with Robinhood’s announcement of its plans to expand into Europe, specifically eyeing the launch of brokerage services in the United Kingdom in the coming weeks. This move by Robinhood was announced amidst a challenging period for the company, as its stock price (HOOD) dropped over 14% following an earnings report that fell short of expectations, primarily due to reduced trading volume and a shrinking customer base.

On November 8, the closing price of Robinhood’s stock was reported by TradingView as $8.37. In a parallel development, ARK has been divesting from the Grayscale Bitcoin Trust (GBTC). On the same day, ARKW sold 48,477 GBTC shares, totaling approximately $1.4 million.

Since October 24, ARK has offloaded a total of 427,573 GBTC shares, valued at around $11.9 million at the time of this report. This selling trend is nearing the total GBTC shares ARK sold in November 2022.

In addition to these market moves, ARK has announced plans to launch new ETFs focusing on Bitcoin and Ether futures contracts. This initiative will be in collaboration with 21Shares, ARK’s primary partner in cryptocurrency ETFs.

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ARK Invest and 21Shares Launch Innovative Digital Asset ETF Suite

by Blockchain News

ARK Invest, led by the pro-Bitcoin advocate Cathie Wood, and 21Shares, a renowned exchange-traded product (ETP) supplier, have announced the launch of a new suite of digital asset exchange-traded funds (ETFs). This collaboration marks a pivotal step in offering investors a comprehensive range of options for integrating digital assets into their investment portfolios.

The newly launched ETF suite is unique in its approach, combining on-chain insights with traditional investment indicators. This method aims to provide a more informed and robust investment strategy in the volatile world of cryptocurrencies. The suite includes the ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA), an actively managed ETF that targets 100% exposure to Bitcoin through futures contracts.

The suite, which is expected to start trading in the coming week, will be listed on the Chicago Board Options Exchange (CBOE). It comprises five different products, each designed to cater to various aspects of digital asset investment. Notably, the suite does not offer direct investment in spot Bitcoin, as highlighted in the firms’ disclaimer. Instead, it focuses on Bitcoin and Ether futures contracts and includes a product for investing in public stocks of blockchain-related companies, named the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This product aims to provide investors with holistic exposure to the advancement of blockchain technology.

The launch has sparked discussions among experts, including Bloomberg analysts James Seyffart and Eric Balchunas, regarding the potential acceptance of Bitcoin ETF registrations by the United States Securities and Exchange Commission (SEC). While there is speculation that the SEC might approve all 12 ETF registrations, the analysts emphasize that this remains a hypothesis with no definitive evidence currently supporting it.

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ProShares to Launch First Ether ETF and Blended Crypto Funds

by Blockchain News

Bethesda, Maryland-based ProShares, a prominent player in the crypto-linked ETF market, has announced a significant expansion of its product line. On October 2, 2023, the firm will launch three new exchange-traded funds (ETFs), including the ProShares Ether Strategy ETF (EETH). This will be the first ETF specifically designed to track the performance of ether, the second-largest cryptocurrency by market capitalization. In addition to EETH, ProShares is introducing two blended ETFs that aim to offer investors exposure to both bitcoin and ether, the dominant cryptocurrencies in the market.

ProShares has been a pioneer in the ETF industry since its inception in 2006. With over $60 billion in managed assets, the firm has been a leader in various investment strategies, including crypto, dividend growth, and geared (leveraged and inverse) ETFs.

The launch of these ETFs is a significant milestone in the maturation of the cryptocurrency market. It follows ProShares’ earlier successes, including the launch of BITO in 2021 and BITI, the first U.S. short bitcoin-linked ETF, in 2022. These new ETFs are expected to further legitimize cryptocurrency investments and could potentially attract a new wave of institutional investors.

Michael L. Sapir, CEO of ProShares, highlighted the growing demand for crypto-linked ETFs, citing the success of their bitcoin-linked ETF, BITO. Launched nearly two years ago, BITO has amassed more than $2 billion in net inflows and has become the largest crypto-linked ETF globally. “The launch of EETH is a response to substantial investor demand for a regulated financial product that targets ether,” said Sapir.

ProShares is also diversifying its offerings with the Bitcoin & Ether Equal Weight Strategy ETF (BETE) and the Bitcoin & Ether Market Cap Weight Strategy ETF (BETH). BETE will undergo monthly rebalancing to maintain a 50/50 weighting between bitcoin and ether. In contrast, BETH will adjust its holdings based on the market capitalization of the two cryptocurrencies. “These groundbreaking ETFs offer investors the opportunity to target the performance of the two leading cryptocurrencies through a single transaction and a single ticker,” Sapir elaborated.

One of the key advantages of these new ETFs is their accessibility through traditional brokerage accounts. This eliminates the need for investors to set up a separate crypto custodian, exchange account, or wallet. “Our crypto-linked ETFs are designed to attract investors who are interested in cryptocurrencies but are concerned about the risks associated with custody or the complexities of direct purchases,” Sapir noted.

Unlike many other investment vehicles, these ETFs do not invest directly in cryptocurrencies. Instead, they primarily invest in ether and bitcoin futures. According to ProShares’ research, these futures have historically shown a .99 correlation with their respective cryptocurrencies, offering a near-perfect tracking of the underlying assets.

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Bitcoin (BTC) $ 41,191.04 6.13%
Ethereum (ETH) $ 2,210.31 6.54%
Litecoin (LTC) $ 71.94 7.04%
Bitcoin Cash (BCH) $ 229.61 8.74%