ARK Invest and 21Shares Aim to Launch Ethereum Futures ETFs
Investment firms ARK Invest and 21Shares have collaborated to apply for two Ethereum futures exchange-traded funds (ETFs). Last week, reports surfaced that the United States securities regulator might start approving ETF applications soon. The proposed ETFs are named “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY), as disclosed in a filing to the Securities and Exchange Commission on August 24.
According to the filing, ARKZ will allocate a minimum of 25% of its total assets to cash-settled Ethereum futures contracts, such as those traded on the Chicago Mercantile Exchange (CME). On the other hand, ARKY will consist of both Bitcoin and Ethereum futures contracts. Empowered Funds will serve as the investment advisor for both Ethereum ETFs.
In 2021, ARK Invest and 21Shares initially teamed up to launch a spot Bitcoin ETF. However, their first two attempts were rejected by the SEC in January and March 2022. They filed their most recent Bitcoin spot ETF application in April, approximately two months before asset management giant BlackRock submitted its own application. Recently, the SEC deemed many of the Bitcoin spot ETF applications as inadequate. Consequently, ARK 21Shares and other applicants added a surveillance sharing agreement to their applications in response.
Aside from the Ethereum futures ETFs, the investment firms are also eagerly awaiting the outcomes of ARKA, which stands for Ark 21Shares Active Bitcoin Futures ETF, and ARKC, which is Ark 21Shares Active On-Chain Bitcoin Strategy ETF.
Expert Outlook on Ethereum’s Potential
According to industry experts, Ethereum is considered “woefully undervalued” but continuing to gain in power. The growing popularity of decentralized finance (DeFi) applications has contributed to Ethereum’s rise as the preferred platform for smart contracts and token creation. Ethereum’s strong fundamentals and ongoing development make it a compelling long-term investment for investors interested in the cryptocurrency space.
Editor Notes: Uber Crypto News
Ethereum futures ETFs are gaining traction in the investment world, with ARK Invest and 21Shares joining the queue to offer these products. This move highlights the increasing demand for diverse investment options in the cryptocurrency market. Stay updated with the latest news and trends in the world of cryptocurrencies by visiting Uber Crypto News.