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Cathie Wood Fund Reportedly May Invest in Canadian Bitcoin ETFs

Cathie Wood's ARK Next Generation Internet ETF may invest in Canadian bitcoin in a bid to diversify assets.

Cathie Wood's Ark Invest is reportedly set to invest in Canadian bitcoin exchange-traded funds in a bid to diversify. 

The money manager had cut huge positions of China-based stocks last month to mitigate exposure to the country's regulatory crackdown.

According to Bloomberg News, Wood's firm tweaked its $5.7 billion ARK Next Generation Internet ETF's (ARKW) - Get Free Report prospectus to include reference to holding exposure to cryptocurrencies via “exchange-traded funds domiciled in Canada.”

The language adjustments to ARK Next Generation Internet were made in a filing on Friday.

Investors and issuers in the $6.8 trillion U.S. ETF market are still waiting for regulators to approve exchange-traded products investing in cryptocurrency. 

ARK's Next Generation Internet ETF fund already has some bitcoin exposure -- about 5.5% of the fund is invested in Grayscale Bitcoin Trust.  (GBTC) - Get Free Report

Wood's fund has significantly reduced its exposure to China amid sweeping regulatory changes that have made the investment environment riskier, according to a Financial Times report.

Wood has backed Chinese stocks like Alibaba  (BABA) - Get Free Report, Pinduoduo  (PDD) - Get Free Report, JD.com  (JD) - Get Free Report and Tencent undefined across different funds. 

In late August, Wood said she was keeping an “open mind” about Chinese stocks, Business Insider reported.

To be sure, Wood hasn't made any significant sales on her China-based stocks this month, except two trades of 20 and 18 shares of Alibaba on Sept. 3, according to arkinvestdailytrades.com.

The major selling for her China-based stocks took place in August. Wood most recently bought shares of JD.com on Sept. 3 in two trades of 59,000 and 32,399 shares.

Separately, last week, Wood sold more than 180,000 shares of Tesla  (TSLA) - Get Free Report, taking advantage of a recent rally as the EV stock rose for the third week in a row.