What happened

Shares of Longview Acquisition (NYSE:LGVW) have popped today, up by 16% as of 1:15 p.m. EST, after ARK Invest bought approximately 460,000 shares  for its Ark Genomic Revolution ETF (NYSEMKT:ARKG). Longview Acquisition is a special purpose acquisition company (SPAC) that recently announced that it is merging with Butterfly Network, which makes a portable ultrasound device and accompanying app.

So what

Longview, which will soon change its ticker symbol to BFLY after the merger closes, now represents a modest 0.17% of the exchange-traded fund (ETF), but ARK CEO and CIO Cathie Wood has a history of continuing to add to new positions after initiating a small stake.

Butterfly's ultrasound device and app

Image source: Butterfly Network.

The ARK Genomic Revolution fund's objective  is to invest in companies that incorporate advanced scientific technology and genomics into their business. The fund was created in 2014 and has $2.3 billion in assets under management (AUM). Unlike most ETFs that are passively managed, the ARK Genomic Revolution is actively managed and therefore carries a higher expense ratio (0.75%) compared with passive funds.

Now what

Along with the merger, Longview is looking to raise an additional $175 million from investors as part of a private investment in public equity (PIPE) deal. Longview currently has $414 million in cash. Butterfly is attempting to disrupt an $8 billion addressable market with its ultrasound technology platform, which will provide low-cost medical imaging.

The merger is expected to close in the first quarter of 2021.