Business Movements In Crypto Could Be Fabulous For This Fintech ETF

[ad_1]

Bitcoin is in a funk. This is not up for debate, but the recent weakness of the world’s largest cryptocurrency does not diminish its long-term use.

Fintech companies don’t shy away from Bitcoin either. This could prove fruitful for exchange-traded funds like the ARK Fintech Innovation ETF (NYSEARCA: ARKF).

For example, Square (NYSE: SQ), ARKF’s largest stake with a weight of 10.35%, recently said it was building a new unit linked to Bitcoin. In a tweet, CEO Jack Dorsey said the company is building an open development platform for the sole purpose of facilitating the creation of non-custodial, unlicensed and decentralized financial services.

This fits in with Dorsey’s long-standing goal of transforming Square into a bigger and bigger company. Currently, the main businesses of the fintech company are Cash App, Square Seller products and music streaming service Tidal, according to Bloomberg. Cash App, which started out as a money transfer avenue and an alternative to traditional banks, allows users to buy, sell, and hold Bitcoin and stocks.

Square’s success in the new Bitcoin venture could be significant to ARKF’s fortunes, as the fund is the largest ETF owner in the stock. Two other ARK funds, the flagship ARK Innovation ETF (NYSEArca: ARKK) and the ARK Next Generation Internet ETF (NYSEArca: ARKW) are also among the top 10 holders of Square stock ETFs.

In other crypto-related news, PayPal (NASDAQ: PYPL) said on Thursday that users can now buy up to $ 100,000 worth of Bitcoin and select other cryptocurrencies per week, up from a previous limit of 20. $ 000. The company is also removing its annual limit of $ 50,000. Bitcoin cash, ether, and Litecoin are the other digital coins available on PayPal.

These changes will allow our customers to have more choice and flexibility in purchasing cryptocurrency on our platform, said Jose Fernandez da Ponte, vice president of PayPal, blockchain, crypto and digital currencies, in a statement released Thursday.

As of July 15, PayPal was ARKF’s third largest holding at just over 5%. The fund is further leveraged for high crypto transactions thanks to its 3.31% allocation to crypto exchange operator Coinbase (NASDAQ: COIN).

To learn more about disruptive technologies, visit our Disruptive Technology Channel.

The opinions and forecasts expressed herein are solely those of Tom Lydon and may not come to fruition. The information on this site should not be used or interpreted as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.

[ad_2]