ARK Invest Teams Up with 21Shares for Cryptocurrency Futures ETFs

ARK Invest, in collaboration with 21Shares, has submitted applications for two new exchange-traded funds (ETFs) centered around cryptocurrency futures. The proposals, detailed in an initial prospectus dated August 24, include an ETF exclusively investing in Ethereum futures (ARKZ) and another covering both Bitcoin and Ethereum futures (ARKY). These applications, awaiting approval from the U.S. Securities and Exchange Commission (SEC), aim to achieve long-term capital appreciation.

The ARK 21Shares Active Ethereum Futures ETF (ARKZ) will allocate investments to standardized Ethereum futures contracts traded in U.S. dollars, regulated by the Commodity Futures Trading Commission (CFTC). These contracts are expected to be offered on exchanges like the Chicago Mercantile Exchange (CME). It’s important to note that these ETFs won’t provide direct exposure to the spot prices of cryptocurrencies, relying on futures contracts for exposure instead.

ETF Newz Says:

While these ETFs may not capture the full volatility or potential gains of underlying assets due to their focus on futures, they carry inherent risks related to factors such as pricing contango and backwardation. The SEC’s decision on these applications is highly anticipated, especially considering the ongoing interest in cryptocurrency ETFs and the regulator’s recent moves in that direction.

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