Disclaimer: This blog is just for educational and informative purposes and should not be considered an investment or trading advise
Key Takeaway points:
- Collaborative Application: ARK Invest and 21Shares jointly apply for Ethereum futures ETFs.
- Diverse ETF Approaches: Proposed ETFs vary in focus, from Ethereum-only to dual Bitcoin and Ethereum futures.
- Regulatory Adaptation: The industry adapts to SEC's requirements, signaling anticipation for expanded crypto investment options.
Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United States securities regulator could soon begin approving applications.
The two proposed Ethereum futures ETFs are “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and the “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY), according to an Aug. 24 filing to the Securities and Exchange Commission.
The filing states that ARKZ would invest at least 25% of its total assets in cash-settled Ethereum futures contracts, such as those traded on the Chicago Mercantile Exchange (CME). ARKY, on the other hand, will consist of both Bitcoin and Ethereum futures contracts.
Empowered Funds has been assigned as the investment advisor for the two Ethereum products.
Ark Invest and 21Shares first partnered to launch a spot Bitcoin ETF in 2021.
The SEC knocked back its first two attempts in March 2022 and in January. Its most recent Bitcoin spot ETF application was filed in April — about two months before the $10 trillion firm BlackRock put in its application.
However, the SEC recently labeled many of the Bitcoin spot ETF applications as inadequate, which prompted ARK 21Shares and other applicants to add a surveillance-sharing agreement to their applications.
The investment firms are also awaiting the outcomes of Ark 21Shares Active Bitcoin Futures ETF (ARKA) and Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).
Ark Invest and 21Shares plan to team up and introduce an Ethereum Futures ETF, as indicated in a recent filing to the United States Securities and Exchange Commission (SEC).
For the past two years, both companies have been awaiting approval for their collaborative Bitcoin ETF. An SEC filing on August 24 lists Ark Invest and 21Shares as sub-advisors for a joint Ethereum ETF product. However, an executive from 21Shares will be actively managing the fund’s day-to-day operations.
The filing claims that Ethereum’s future value hinges on its widespread adoption, and any changes to this could affect its price.
Six other companies are currently seeking approval for an Ether Futures ETF.
These include Ether Strategy ETF, Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy ETF, VanEck’s Ethereum Strategy ETF, ProShares Short Ether Strategy ETF, and the Grayscale Ethereum Futures ETF.
At the time of writing, ETH is currently trading at a value of $1653.
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What is the significance of the collaboration between ARK Invest and 21Shares?
The collaboration highlights their joint effort in applying for Ethereum futures ETFs, potentially paving the way for innovative crypto investment options.
How do the proposed ETFs differ in their investment approach?
One ETF, ARKZ, focuses exclusively on Ethereum futures, while the other, ARKY, combines both Bitcoin and Ethereum futures in its strategy.
How has the regulatory landscape influenced the ETF application process?
The industry's adaptation, including incorporating surveillance sharing agreements, showcases its response to regulatory demands, showcasing the anticipation for broader crypto investment opportunities.