ARK Invest and 21Shares, an investment management firm led by Bitcoin supporter Cathie Wood, and an ETP provider respectively, have teamed up to launch a new range of digital asset ETFs. The goal is to offer more choices for investors who want to include digital assets in their portfolios.
The countdown begins: today, 21Shares and ARK Invest announce the upcoming launch the ARK and 21Shares Digital Asset ETF Suite.
The ETF suite uses crypto-specific insights alongside traditional indicators. pic.twitter.com/dkg8aTCtVR
— 21Shares Funds (@21shares_funds) November 8, 2023
The two firms have jointly filed for two futures ETF products based on Ether (ETH) and Bitcoin (BTC). The application was submitted by investment advisor Empowered Funds, and the products are named the ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY).
ARK Invest and 21Shares’ 5 New Products Aim To Revolutionize the Crypto Market
The new products will not invest directly in Ether and Bitcoin, nor will they have direct exposure to the ‘spot’ prices of these cryptocurrencies. Instead, they will focus on cash-settled futures contracts traded on CFTC-registered commodity exchanges, such as the CME.
ARKZ will invest at least 25% of its funds in Ether futures products linked to the ETH cryptocurrency, and the rest of the funds will be invested in U.S. Treasuries, market instruments, and repurchase agreements.
ARKY will invest at least 25% of its funds in both Bitcoin and Ether futures products, and the remaining assets will be allocated to cash and cash equivalents, mainly U.S. government securities.
In addition to Bitcoin and Ethereum futures, another product called the “ARK 21Shares Blockchain and Digital Economy Innovation ETF” is also designed to invest in public equities of companies in the blockchain industry. According to 21Shares, this provides investors with a “holistic exposure” to the growth of blockchain technology.
The new applications follow several filings for Ether futures ETF products by some of the largest asset managers in the world. These include applications for a Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy ETF, VanEck Ethereum Strategy ETF, ProShares Ether Strategy ETF, and the newly filed ProShares Short Ether Strategy ETF.
The interest in digital asset ETFs increased after BlackRock filed for a spot Bitcoin ETF in June, which was followed by similar applications from many asset managers, such as Fidelity, Invesco/Galaxy, WisdomTree, VanEck, Wise Origin, and ARK.