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- ARK Invest diversifies by adding Solana (SOL) to ARKW and ARKF, marking a shift towards proof-of-stake assets.
- Both ARKW and ARKF invest in 3iQ’s Solana Staking ETF, gaining direct exposure to staked Solana.
- Despite ARK’s move, Solana’s price remains stable, signaling interest in decentralized finance.
ARK Invest has added Solana (SOL) to two of its most popular exchange-traded funds. ARK Investment Management’s ARKW and ARKF funds now directly own the 3iQ Solana Staking ETF, SOLQ. This is a new directionality for ARK since it is shifting from investing only in Bitcoin and Ethereum to the world of proof-of-stake assets.
Currently, both ARKW and ARKF are invested in SOLQ. An ETF that specifically provides direct exposure to staked Solana in Canada. This ETF makes it possible for one to earn staking rewards without participating in the management of assets themselves. Thus, gaining a place in this space allows ARK to expand the scope of its investment focus and adopt a new type of blockchain solution.
Source: X
ARK’s First Proof-of-Stake Move
ARKW and ARKF are two of the most popular ETFs managed by ARK Invest. Both aim at new technologies in emerging markets and cryptocurrencies. Such funds have invested in firms like Coinbase, Block, and Robinhood, which are related to the cryptocurrency market. The participation of Solana is ARK’s first direct engagement in the proof-of-stake world.
However, the recent announcement has been made in Solana; it is still relatively stable, and its price has not fluctuated much. At the time of writing this article, the SOL price is $144.38, and it has dipped by 3.36% in the last 24 hours.. This price stability is further indication of the unpredictable market that characterizes the global cryptocurrency markets.
In March, other firms, including Issuers of Volatility Shares, also started launching their ETFs linked to Solana. This measure can be seen as a sign that there are going to be changes in the situation with the regulation. Following ARK’s latest move to add Solana to its portfolio, several other firms might also consider investing in proof-of-stake assets.
Solana’s Institutional Adoption
The rising popularity of staking on blockchain is observed because of the increase in the cryptocurrency market. Specifically, to diversify their holdings, there is a plan in companies such as ARK Invest to include more innovative kinds of tokens. It could establish the ground for institutional adoption of SOL with more capital flowing into the Solana ecosystem.
Further adoption of decentralized finance (DeFi) is set to attract more institutional investors. The interest of investors in the development of this area is expected to remain high, as attention is shifting to digital currencies.
