The Double-Barreled Approach: ARK Invest and 21 Shares Apply for Ethereum Futures ETFs
The US Securities and Exchange Commission (SEC) has delayed its decision on the ARK 21Shares Spot Bitcoin ETF application. In response, ARK Invest and 21 Shares have applied for a separate Ethereum futures ETF, showing their commitment to entering the crypto market.
- ARK Invest and 21 Shares will act as sub-adviser and sub-sub-adviser on two separate funds that invest in Ethereum futures contracts.
- The ARK 21Shares Active Ethereum Futures ETF will invest in a portfolio of ether futures contracts traded on regulated commodity exchanges.
- The fund will not directly invest in Ether but track its performance through futures contracts.
- The remaining assets of the fund will be invested in short-term cash instruments to ensure liquidity and hedge against investments in Ether futures.
- ARK Invest and 21 Shares are also planning to offer a fund that invests in both Bitcoin and Ethereum futures contracts.
The move by ARK Invest and 21 Shares raises questions about their true intentions in the crypto space. Some speculate that these firms are looking to become “gatekeepers” of crypto to balance their deposit base and make profits when cryptocurrencies disrupt the economy.
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Hot Take: A Strategic Move or Pure Profit-Seeking?
While ARK Invest and 21 Shares’ application for Ethereum futures ETFs shows their dedication to the crypto market, it also raises doubts about their motives. With the delay of the ARK 21Shares Spot Bitcoin ETF application, these firms may be pursuing a double-barreled strategy to gain exposure to both Ethereum and Bitcoin. However, skeptics argue that these firms are not truly bullish on the crypto industry but are instead seeking to profit from becoming gatekeepers of the space. Only time will tell whether their intentions are strategic or purely profit-driven.
