Aug 25, 2023

How to Invest in Ethereum Futures ETF with ARK Invest and 21Shares

Recent Cryptocurrency Ethereum Futures ETF Offered by ARK Invest and 21Shares.
ARK Invest, 21Shares join queue to offer Ethereum futures ETF

Investment Firms Apply for Ethereum Futures ETFs

Investment firms ARK Invest and 21Shares have recently joined forces to apply for two Ethereum futures exchange-traded funds (ETFs), after reports that the United States securities regulator could soon begin approving applications.

According to an Aug. 24 filing to the Securities and Exchange Commission (SEC), the two proposed ETFs are “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and the “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY).

ARKZ will invest at least 25% of its total assets in cash-settled Ethereum futures contracts, such as those traded on the Chicago Mercantile Exchange (CME). As for ARKY, it will consist of both Bitcoin and Ethereum futures contracts.

The filing of the two ETFs is a significant step for crypto investors looking to gain exposure to Ethereum and Bitcoin, which are two of the most popular cryptocurrencies in the world. It also shows the increasing interest in Web 3.0 applications and how to invest in them, as well as the growing demand for crypto exchanges like Gemini.

Crypto Ethereum Products and SEC Applications

Empowered Funds has been appointed as the investment advisor for two Ethereum products.

In 2021, Ark Invest and 21Shares first partnered to launch a spot Bitcoin ETF. However, the SEC denied their first two attempts in March 2022 and January. In April, the two companies filed their most recent Bitcoin spot ETF application, which was two months prior to the $10 trillion firm BlackRock’s own application.

Recently, the SEC labeled many of the Bitcoin spot ETF applications as inadequate, prompting ARK 21Shares and other applicants to add a surveillance sharing agreement to their applications.

Investment firms are also closely monitoring the outcomes of Ark 21Shares Active Bitcoin Futures ETF (ARKA) and Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC), as they consider how to invest in web 3.0 and the recent crypto market.

The crypto market has seen a surge in Ethereum and other crypto exchanges such as Gemini, as well as the emergence of AI in the crypto space this week. The Apple Health application is also a popular web 3.0 application.

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