ARK Invest and 21Shares have partnered and filed for two Ethereum and Bitcoin Futures ETFs. According to the official document submitted to the Securities and Exchange Commission [SEC], the investment firms have proposed the ‘ARK 21Shares Active Ethereum Futures ETF’ [ARKZ] and the ‘ARK 21Shares Active Bitcoin Ethereum Strategy ETF’ [ARKY].
ARKZ to invest 25% in cash-settled Ethereum futures contracts
The filing pointed out that ARKZ would divert at least 25% of its total assets into cash-settled Ethereum futures contracts, similar to the ones traded on the Chicago Mercantile Exchange [CME]. Empowered Funds will oversee the two Ethereum products and take up the role of an investment advisor.
The official statement clarified that both funds seek to maintain ”managed exposure” to Bitcoin and Ether. This will be done by investing in Bitcoin Futures and Ether Futures. However, the funds will not be invested directly in Bitcoin or Ethereum.
Ark Invest and 21Shares first teamed up to launch a spot Bitcoin ETF in 2021. Along with the latest applications, the firms are looking forward to the outcomes of the Ark 21Shares Active Bitcoin Futures ETF [ARKA], and the Ark 21Shares Active On-Chain Bitcoin Strategy ETF [ARKC].
The crypto community is ”amazed” by the number of issuers tossing their hat in the ETF ring in the U.S. Currently, more than a handful of filings are on the SEC’s table. 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.
Reasoning out the recent spike in applicant interest, Bloomberg’s James Seyffart explained that to be known as an entity offering crypto exposure, firms need to have an ”option on the menu.” During the initial stages, these vehicles might not even help the firm make money, he warned. Commenting on the bandwagon effect on X [formerly Twitter], another community member posted,
“Crypto ETFs are going to be too overcrowded.”