ARK Invest and 21Shares partner to launch crypto exchange-traded funds
Investment management firm ARK Invest, led by prominent pro-Bitcoin investor Cathie Wood, has teamed up with exchange-traded product (ETP) provider 21Shares to introduce a suite of digital asset exchange-traded funds (ETFs).
According to 21Shares, the collaboration aims to offer a range of options to investors seeking to incorporate digital assets into their portfolios. Specifically, the alliance will leverage on-chain signals and their respective expertise in the crypto sector to provide “long-term capital appreciation” through investments in Bitcoin and Ether futures contracts.
The products will focus exclusively on Bitcoin and Ether futures contracts while also including a blend of “public equities of companies engaged in the blockchain industry.”
As stated in prospectuses released by both companies, five ETF products are set to begin trading in the coming week, with listings on the Chicago Board Options Exchange (CBOE). Additionally, these ETFs will not offer direct investment in spot BTC, and the companies have advised investors looking for exposure to Bitcoin’s price to explore alternative investment avenues.
One of the products, the ARK 21Shares Blockchain and Digital Economy Innovation ETF, is designed to invest in public equities of companies operating within the blockchain sector. This ETF aims to provide investors with what 21Shares describes as a “holistic exposure” to the growth of blockchain technology.
“The suite aims to deliver long-term capital appreciation through strategic investments in Bitcoin and Ethereum futures contracts, and the application of blockchain technologies. Neither the funds nor the underlying ETF invest directly in bitcoin or other digital assets or maintain direct exposure to spot bitcoin,” the statement reads.
The news comes as the market speculates on the potential approval of Bitcoin ETF filings by the United States Securities and Exchange Commission (SEC). Some reports suggest that the SEC may approve all 12 ETF filings if it decides to embrace the concept.
ARK Invest believes that the new suite of ETFs will offer a diverse range of options for investors seeking to diversify their portfolios. 21Shares shares a similar perspective, stating that the suite will enable clients to make strategic investments.
This isn’t the first collaboration between ARK and 21Shares as the two companies are also jointly pursuing a spot ETF, the ARK 21Shares Bitcoin ETF. Despite being rejected twice previously, Cathie Wood’s Ark Invest amended its proposal for a spot Bitcoin exchange-traded fund (ETF) to include a Surveillance Sharing Agreement (SSA) with a Bitcoin spot trading operator.
This addition aims to enhance market surveillance and prevent fraudulent activities within the ETF, which was the reason cited by the SEC to reject all proposals to create a regulated Bitcoin derivative product.