The entire world of finance (both traditional and crypto) is eagerly waiting for the US SEC to approve spot Bitcoin ETF.
Preparations are in top gear as Cathie Wood’s Ark Invest is moments away from launching a new “suite” of exchange-traded funds (ETFs). In line with this ambition, the asset management company has partnered with the world’s largest crypto ETP issuer 21Shares.
According to Ark Invest, the suite will open up an array of options to investors who are looking to diversify their portfolios. 21Shares also shares similar sentiments with Ark Invest about the upcoming suite, which it says will enable clients to carry out strategic investments. The firm’s statement reads:
“The suite aims to deliver long-term capital appreciation through strategic investments in Bitcoin and Ethereum futures contracts, and the application of blockchain technologies.”
Company prospectuses reveal that the suite is made up of five products, and will begin trading on the Chicago Board Options Exchange (Cboe) next week.
About the ETFs, Ark has confirmed that they would not directly invest in any digital assets. The firm advised any investor looking for direct exposure to any digital asset to look elsewhere. Its statement reads:
“Neither the funds nor the underlying ETF invest directly in bitcoin or other digital assets or maintain direct exposure to spot bitcoin.”
21Shares has also hinted at what to expect from the funds. According to a statement from its website, the products would only invest in Bitcoin and Ether futures contracts, alongside a mix of “public equities of companies engaged in the blockchain industry.”
Anticipating Spot Bitcoin ETF Approval
It might be worth mentioning that Ark’s upcoming ETFs are coming at a time of such great anticipation. The entire world of finance (both traditional and crypto) is eagerly waiting for the United States Securities and Exchange Commission (SEC) to approve a spot Bitcoin ETF. However, the approval continues to lag even though the regulator has approved funds that invest in Bitcoin futures.
Nonetheless, there have been reports that approval is imminent, and even the price of Bitcoin has surged on the same expectation.
Interestingly, this is not the first partnership between Ark and 21Shares. The duo are also pursuing a joint spot ETF – the ARK 21Shares Bitcoin ETF. In June, 21Shares refiled an amended application for the ETF.