Given that Cathie Wood and her team at Ark Invest are such big fans of cryptocurrencies, especially Bitcoin (BTC 0.60%), it's only natural that the company has its own spot Bitcoin exchange-traded fund.
The ARK 21Shares Bitcoin ETF (ARKB 0.38%) tracks the price of Bitcoin by owning actual tokens of the world's largest cryptocurrency and distributing shares based on ownership. This makes it easy for investors of all kinds to gain exposure to Bitcoin without the hassle of purchasing Bitcoin directly and storing it in a crypto wallet.
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The ARK 21Shares Bitcoin ETF charges a 0.21% management fee, which is the only fee charged when purchasing the ETF. Should you buy, sell, or hold the ETF in 2026?
A unique diversifier
Given that the ARK 21Shares Bitcoin ETF tracks the price of Bitcoin, the question really boils down to whether one should buy, hold, or sell Bitcoin. A main reason to hold the token is that it can provide unique diversification in one's portfolio. Bitcoin's finite 21 million tokens that will ever be mined, position the token as a potential form of digital gold.
While Bitcoin at times trades like a high-beta tech stock, it has also tracked the movements of gold and other precious metals. Gold has surged in recent years due to geopolitical concerns and mounting U.S. government debt, which has raised concerns among investors, particularly in the bond market, about the U.S. government's financial situation and how sustainable it is.
The U.S. government now has a fiscal deficit of nearly $1.8 trillion and total debt of over $38 trillion. Each year, the government allocates a significant portion of the fiscal budget to interest payments on the debt.
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Key Data Points
A cohort of economists and market strategists believes that, over time, this will contribute to U.S. dollar debasement, particularly if the government implements policies to boost growth, which could lead to higher or more prolonged inflation. This is the main case for gold, and it's an investment theory that has worked incredibly well in recent years.
There's still widespread dispute over whether Bitcoin is a form of digital gold. While I can't be certain, I think Bitcoin's ascent is telling that there is at least a good chance of Bitcoin being a form of digital gold, and therefore a unique diversifier in one's portfolio. For this reason, I think it's a good idea to at least have some Bitcoin in your portfolio.
The fact that over 95% of tokens have now been mined and are in circulation also sets up a strong supply-and-demand dynamic for Bitcoin.
