ARK shuts Rize digital payments ETF

ARK Invest Europe has announced the closure of its digital payments ETF as the thematic specialist looks to rationalise its range ahead of new launches.

The Rize Digital Payments Economy ETF (PMNT) was acquired as part of the 2023 takeover of Rize ETF by Cathie Wood’s ARK, however the fund has “struggled” to gather assets under management (AUM) and currently houses just $5.6m, according to ETFBook data.

PMNT, which launched in November 2021, will cease trading on 24 March 2025.

ARK closed four Rize ETFs in November 2023 shortly after the acquisition, with the remaining seven products – including PMNT – currently holding assets of around $390m, ETFBook data show.

According to the shareholder notice, however, PMNT’s directors have exercised their right to close the ETF once its AUM has sat below $50m for at least 30 consecutive days.

The firm will now turn its focus to on its actively managed thematic range – marketed under the ARK brand – which comprises three ETFs with a combined AUM of $110m.

The flagship ARK Innovation UCITS ETF (ARXK) houses $45m in assets.

In a release, ARK stated that it is “preparing the ground for additional fund launches in 2025” and has decided to “focus on the funds it believes have the strongest potential for growth in the coming years.”

The firm’s head of European sales James Thomas recently departed to State Street Global Advisors while its ETFs were recently added to the Revolut trading platform.