ARK Invest, led by Cathie Wood, has announced an exclusive partnership with the Canadian company SOL Strategies, specializing in staking. This cooperation marks a new step in ARK's investment strategy in cryptocurrencies.
Details of the ARK Invest and SOL Strategies Partnership
As part of the partnership, ARK Invest will move its validator operations to the staking infrastructure of SOL Strategies. This fund, established in 2020, typically invests in 10 to 12 cryptocurrencies with the aim of generating returns over a full market cycle lasting four to five years.
"We serve a growing number of institutional and enterprise clients seeking compliant, reliable access to Solana through delegated staking and custom validator infrastructure," said SOL Strategies CEO Leah Wald.
Potential and Risks of Staking
Staking involves locking cryptocurrencies to help secure a blockchain network and earn rewards. Solana epochs last about two to three days, after which staking participants receive a certain amount of the native cryptocurrency.
"We currently operate five validators with over 3.59 million SOL (approximately CAD $888 million) in assets under delegation and more than 5,700 unique wallets staked," Wald added. However, it is important to note that staking also carries risks, such as the potential loss of invested funds if a validator misbehaves.
Increased Interest from Institutional Investors in Cryptocurrencies
ARK Invest's decision reflects an increasing interest from institutional investors looking to earn yield on their crypto assets. In recent months, several issuers of Ether-based ETFs have submitted formal requests for SEC approval to allow for income-generating features.
"We're seeing a clear surge in institutional interest in Solana exposure, not just to the asset, but to structured, investable vehicles that provide access with regulatory clarity," said Wald. This suggests that asset managers are seeking products like ETFs and structured notes.
The partnership between ARK Invest and SOL Strategies highlights the growing interest in staking technologies and crypto assets among institutional investors. This collaboration is expected to open new opportunities for institutional investments in cryptocurrencies.
