Investment Considerations and Objectives
Investors in The Digital Ark should carefully consider the investment objectives, risks, charges, and expenses before making an investment. The prospectus or summary prospectus provides detailed information about the Fund. It is essential to review the prospectus and understand the risks associated with investing in an ARK 21Shares ETF. Investments in these ETFs are subject to risks, and there is a possibility of losing money invested in them. The portfolios of ARK 21Shares ETFs are more volatile than broad market averages, adding an additional layer of risk for investors.
Market Price Fluctuations and Trading Dynamics
Shares of the ARK 21Shares ETFs can be bought or sold at market prices throughout the trading day on the exchange where they are listed. The market price of these ETF shares can vary from the net asset value (NAV) of the ETFs and may fluctuate based on changes in the NAV and market demand. During times of market volatility, the market price can significantly differ from the NAV. It's important to note that active trading of these ETF shares may incur brokerage costs that impact investment returns.
Risk Factors and Market Liquidity
The ARK 21Shares ETFs have specific risks associated with them, as outlined in their respective prospectuses. There is no guarantee that an active trading market will develop for these ETF shares or that they will continue to be listed. Investors should be aware of the risks involved in buying or selling these ETF shares, including the impact of brokerage commissions and potential trading costs. It is crucial to understand that these ETFs are not FDIC insured, there is no bank guarantee, and investments may lose value.
Unique Risks of Bitcoin Futures and Ether Futures
Investments in The Digital Ark include exposure to Bitcoin Futures and Ether Futures, which are new investment types with unique risks. These assets may be more volatile than traditional investments and can experience significant price fluctuations. Investors need to be prepared for sudden and substantial changes in the value of their investments in these assets. The Fund's performance in Bitcoin Futures and Ether Futures may vary from the performance of Bitcoin and Ether themselves.
Challenges and Uncertainties in Cryptocurrency Markets
Bitcoin, Ether, Bitcoin Futures, and Ether Futures are subject to rapid changes, regulatory uncertainties, and market volatility. The development and acceptance of these cryptocurrencies can impact the value of related futures contracts and investments. Market changes in Bitcoin and Ether can occur swiftly and without prior notice, leading to potential risks for investors in The Digital Ark. The market for Bitcoin Futures and Ether Futures is less mature compared to traditional futures markets, making it more volatile and less liquid.
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