Investment management firm Ark Invest, led by pro-Bitcoin investment veteran Cathie Wood, has teamed up with exchange-traded product (ETP) provider 21Shares to introduce a new suite of digital asset exchange-traded funds (ETFs). This collaboration aims to offer a comprehensive range of options for investors interested in adding digital assets to their trading portfolio.
According to the 21Shares website, the companies will utilize on-chain signals and their crypto-native experience to achieve “long-term capital appreciation” by investing in Bitcoin (BTC) and Ether (ETH) futures contracts. The prospectuses released by the companies indicate that five products are set to commence trading in the coming week, with these ETFs being listed on the Chicago Board Options Exchange (CBOE).
It’s important to note that these ETFs will not provide investors with the opportunity to invest directly in “spot” BTC. Instead, they are focused on Bitcoin and Ethereum futures contracts. Additionally, one product is designed to invest in public equities of companies within the blockchain industry, offering investors holistic exposure to blockchain technology growth.
Meanwhile, Bloomberg analysts have speculated that the United States Securities and Exchange Commission (SEC) may have a chance to approve Bitcoin ETF filings. On Nov. 8, analysts James Seyffart and Eric Balchunas suggested that the SEC could potentially approve all 12 ETF filings if it decides to allow the concept. However, they emphasized that this was only a possibility and there was no concrete decision yet.
Hot Take
The collaboration between Ark Invest and 21Shares signals growing interest in digital asset ETFs as a way for investors to gain exposure to the crypto market through traditional investment vehicles.
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