While I’m not super bullish on Bitcoin or the ARK-favored Grayscale Bitcoin Trust (OTC: GBTC), there are stocks in the company’s actively managed ETFs that are right up my ally. Sea Limited, for example, is the fifth-largest holding in the ARK Innovation ETF, and I plan on adding the stock to my portfolio in the near future. The Singapore-based tech company has posted stellar gains over the last year, and it appears to be on track to deliver more big wins.
Sea operates at the intersection of two industries with huge long-term growth potential: e-commerce and interactive entertainment. Its Shopee platform has established a leadership position in Southeast Asia’s fast-growing online retail industry, and its Garena Free Fire is one of the world’s top-grossing video games.
Southeast Asia is a geographic market that looks poised for rapid development over the next decade, and Sea has established e-commerce and entertainment offerings that are primed to benefit from macroeconomic and category growth. I wouldn’t place bets against Bitcoin, but strong players in the e-commerce and gaming markets currently look like better buys to me.
“Actively managed” leaves a lot of doors open
James Brumley (PayPal): Look, I know Wood’s ARK Next Generation Internet ETF (NYSEMKT: ARKW) has a huge stake in Grayscale Bitcoin Trust, which is an easier way to trade the cryptocurrency than buying and selling Bitcoin itself. A few other ARK funds hold a stake in the same trust.
