New York-based investment firm Ark Investment Management has unveiled its 2017 Bitcoin Index Fund, the first ETF that aims to track and measure bitcoin value over time.
The index is expected to outperform the S&P 500 by 1.3 percent, according to a company press release.
The index’s fund managers will be rewarded with dividends on their holdings, the release stated.
Investment funds like Ark’s will be more readily accessible than the more complex ones.
The company said the fund’s managers will receive an initial $1,000 bonus, and the company will pay out an additional $500 in the form of dividends to the fund owners.
The company is currently seeking investors who are interested in investing in a bitcoin-based ETF.
It’s unclear whether the company is targeting individual investors or institutions.
According to the company, the bitcoin index will track bitcoin’s market capitalization over time, while the S-series fund will track the value of bitcoin as a percentage of bitcoin’s total market cap.
It will track all the major cryptocurrency exchanges, including Bithumb, Poloniex, Coinbase and Blockchain.info, as well as bitcoin exchanges such as Kraken and Bitfinex.
The fund’s fund manager will receive a bonus of $1 million, and investors will also receive an additional share of the index.
The bitcoin ETF will be available in two different funds.
The first fund, the S1 Bitcoin Index, will track Bitcoin as a whole, while other funds will track its largest trading segments.
The second fund, S2 Bitcoin Index , will track individual bitcoin investors.
The S1 fund will also be used to track bitcoin exchanges, which will be the most common asset class.
The S1 is the only bitcoin ETF to have an established track record.
The other bitcoin ETFs track only bitcoin assets, which means investors will need to keep track of their investments before investing in them.
The Bitcoin ETF will launch in the second half of 2018, according the company.