In a joint effort, investment powerhouses ARK Invest and 21Shares have joined forces to submit applications for two exchange-traded funds (ETFs) focused on Ethereum futures. This strategic move comes in response to recent indications that the United States’ securities regulatory body is poised to greenlight such applications shortly.
The proposed ETF offerings include the “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and the “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY), as detailed in an official submission to the Securities and Exchange Commission (SEC) on August 24.
According to the filing, the ARKZ ETF is designed to allocate a minimum of 25% of its overall assets towards cash-settled Ethereum futures contracts, including those traded on the Chicago Mercantile Exchange (CME).
In contrast, the ARKY ETF will encompass a diversified portfolio of Bitcoin and Ethereum futures contracts. Empowered Funds has been appointed as the investment advisor to oversee these innovative products.
This collaboration marks another chapter in the partnership between Ark Invest and 21Shares, initially teamed up to introduce a spot Bitcoin ETF in 2021.
Previously, the SEC had rejected the first two attempts at securing ETF approval in March 2022 and January. A subsequent Bitcoin spot ETF application was submitted in April, approximately two months before the submission made by the $10 trillion asset management behemoth, BlackRock.
In response to the SEC’s assessment that many Bitcoin spot ETF applications needed to be improved, ARK 21Shares and other applicants have incorporated surveillance-sharing agreements into their proposals.
The investment firms are also in anticipation of the outcomes of the Ark 21Shares Active Bitcoin Futures ETF (ARKA) and the Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC), adding to the intrigue surrounding the ETF landscape.