ARK Invest and 21Shares Apply for Bitcoin and Ethereum Futures ETFs

ARK Invest and 21Shares Apply for Ethereum and Bitcoin Futures ETFs

– ARK Invest and 21Shares have submitted applications for two futures exchange-traded funds (ETFs) focused on ether (ETH) and bitcoin (BTC).
– The ETFs will invest in cash-settled futures contracts traded on registered commodity exchanges.
– The ARK 21Shares Active Ethereum Futures ETF (ARKZ) will allocate at least 25% to ether futures products, while the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) will invest at least 25% in both ether and bitcoin futures products.
– The remaining funds in both ETFs will be distributed among cash and cash equivalents, as well as US government securities.
– The Securities and Exchange Commission (SEC) is currently considering approving the launch of Ether Futures ETFs, with several other firms also seeking approval.

Bitcoin ETFs Facing Approval Challenges

– ARK Invest and 21Shares were previously unsuccessful in launching a spot Bitcoin ETF.
– The SEC rejected their first two attempts in March 2022 and January of this year.
– The most recent Bitcoin spot ETF application was submitted in April, along with applications from other firms like BlackRock.
– The SEC has found many Bitcoin spot ETF applications lacking, leading applicants to include a surveillance-sharing agreement in their submissions.
– The decision on the ARK 21Shares Active Bitcoin Futures ETF (ARKA) and Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) is pending.

Hot Take

This joint application by ARK Invest and 21Shares for Ethereum and Bitcoin Futures ETFs demonstrates the increasing interest and demand for crypto-related investment products. The focus on futures contracts allows investors to indirectly participate in the crypto market while minimizing some of the risks associated with direct investment in digital assets. With the SEC considering the approval of Ether Futures ETFs and multiple firms seeking similar approvals, it appears that the ETF landscape for cryptocurrencies is set to expand in the near future.