Table of Contents
According to a recent filing with the U.S. Securities and Exchange Commission (SEC), Ark Invest and 21Shares are teaming up to apply for an Ethereum Futures Exchange Traded Fund (ETF).
Crypto Players Team Up For ETF
In a significant move, prominent players in the race for a bitcoin ETF have turned their attention to the realm of ether futures contracts. Ark Invest and 21Shares, considered strong contenders in the ETF space, have unveiled their involvement in the proposed ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), as per a recent filing.
Both ARKZ and ARKY are set to have Ark Invest and 21Shares listed as sub-advisers. Empowered Funds, an affiliate of Alpha Architect, a white-label ETF platform, will orchestrate the funds themselves.
Notably, ARKZ is designed to allocate a minimum of 25% of its assets to cash-settled ether futures contracts, mirroring the offerings on the Chicago Mercantile Exchange (CME). This allocation may also encompass US Treasury securities, money market instruments, and repurchase agreements.
Will the SEC Approve?
Recently, multiple issuers have submitted filings for similar funds, aligning with the trend. In a surprisingly positive turn of events, insiders close to the SEC have indicated that the regulatory body will not be obstructing Ether futures ETFs. This is a marked departure from the SEC's historically cautious stance.
Although the specific funds that will receive approval remain uncertain, this news has spurred leading entities like Ark Invest and 21Shares to capitalize on the emerging trend.
The SEC has recently disclosed its intention to "institute proceedings" to assess the approval or denial of the ARK 21Shares Bitcoin ETF.
Past Endeavors and Current Plans
The two firms are no strangers to collaboration. Their initial partnership was forged to introduce a spot bitcoin ETF in 2021. Despite facing initial setbacks with the SEC blocking their first two attempts, the companies have persisted. Their most recent attempt was re-filed in April, coinciding with BlackRock's announcement of its own Bitcoin ETF plans. This development triggered a resurgence of interest among other fund issuers.
While ARKZ is focused on ether futures, ARKY takes a more diversified approach. It plans to invest in both bitcoin futures and ether futures contracts in addition to its own planned ETFs holding such contracts. This strategic move highlights the growing interest in leading cryptocurrencies and their associated derivatives.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.