By
Mayowa Adebajo
May 14th, 2024
Both companies are also planning to launch three types of Bitcoin Futures ETFs.
Investment firms ARK Invest and 21Shares are proposing to offer two Ethereum futures exchange-traded funds (ETFs). This follows earlier reports that the United States securities regulator might already be gearing up to start approving applications. Although, in May, the regulator had initially asked issuers to halt all efforts to bring such products to the market.
Per the Thursday co-filing, however, the firms are proposing the “ARK 21Shares Active Ethereum Futures ETF” (ARKZ), and the “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY).
Ark Invest and 21Shares come off as two firms that many view as top contenders in the race for a spot Bitcoin ETF. Therefore, reports that they are also keen to launch funds associated with ether futures contracts might come as a surprise.
However, it appears to be a common case with many other issuers who, reportedly, have also started submitting similar propositions to the regulator.
Ark Invest and 21Shares Keen on Diversifying Investment Options for Crypto Investors
In the filing, the firms explained that ARKZ would invest at least 25% of its total assets in cash-settled Ethereum futures contracts. That is, for instance, those traded on the Chicago Mercantile Exchange (CME). But that’s not all. The filing also revealed that ARKZ may yet invest in US Treasury securities, money market instruments and repurchase agreements.
ARKY, on the other, would be similar to an extent. However, it will invest in both Bitcoin and Ethereum futures contracts, including its own planned ETFs that hold such contracts.
The filing lists Empowered Funds, a subsidiary of white-label ETF platform Alpha Architect, as the fund adviser on both products.
Also noteworthy is how Ark Invest and 21Shares have continued to share a common ETF goal. Since they both partnered to launch a spot Bitcoin ETF in 2021, the duo have been unstoppable in their quests.
Although the SEC initially denied their first two applications, the regulator is currently reviewing their latest proposal. In line with this, the SEC said on August 11 that it would initiate proceedings on the ARK 21Shares Bitcoin ETF matter. According to the regulator, this proceeding will help it to determine whether to approve or deny the proposal.
Meanwhile, both companies are also planning to launch three types of Bitcoin Futures ETFs. They revealed the plans after what seemed like the SEC may have decided to be undecided on the spot bitcoin ETF proposal. And, interestingly, they also listed Empowered Funds as the investment adviser for the planned product trio as well.