- Ark Invest and 21Shares, undeterred by previous challenges with their spot bitcoin ETF, put forward three fresh crypto fund proposals.
- The newly proposed funds encompass bitcoin futures contracts, on-chain strategies, and investments in blockchain and fintech sectors.
Expanding the Crypto Frontier: More Than Just BTC ETFs
As the crypto landscape continues to evolve, industry giants Ark Invest and 21Shares are not content to play it safe. Their ongoing pursuit of a spot bitcoin ETF remains intact. Simultaneously, the duo demonstrates their versatility with a trident of crypto fund proposals, submitted precisely when the Securities and Exchange Commission (SEC) decided to prolong its verdict on their direct bitcoin holding ETF.
Empowered Funds, an offshoot of the white-label ETF platform Alpha Architect, emerges as the designated investment adviser for these new ventures. The expertise of 21Shares and Ark Invest is summoned in the role of sub-advisers.
Delving Deep: Unpacking the Proposed Funds
Ark 21Shares Active Bitcoin Futures ETF (ARKA) would venture into cash-settled bitcoin futures contracts, prominently traded on the Chicago Mercantile Exchange (CME). This fund isn’t solely about bitcoin futures. It encompasses a broader investment palette, including US Treasury securities, money market instruments, and repurchase agreements.
The subsequent proposal, the Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC), reserves a minimum of 25% investment in bitcoin futures contracts, reminiscent of ARKA. The remainder is anchored in cash and its equivalents. The distinction of ARKC arises from its on-chain strategy, employing a proprietary trend indicator. This indicator shapes the fund’s allocation approach, gauging whether the bitcoin market sways bullish or bearish. The indicator’s pulse is set by factors such as historical price data or intricate on-chain data.
To round off the triad, the Ark 21Shares Digital Asset and Blockchain Strategy ETF (ARKD) is on the horizon. ARKD paints a broader canvas, allocating to bitcoin futures contracts, equities from blockchain pioneers, digital asset moguls, and trailblazers in the fintech realm.
Neither Ark Invest nor 21Shares have vocalized their views on these filings, keeping their cards close to their chest.
Their partnership commenced in 2021, with their heart set on launching a spot bitcoin ETF. The SEC, however, was not on the same page, thwarting their endeavors twice by January 2022. Not ones to back down, Ark and 21Shares revived their spot bitcoin ETF proposal in April, right before financial titan BlackRock signaled its entry into the BTC ETF arena.
The SEC’s recent statement manifests its indecision on the Ark 21Shares Bitcoin ETF, a breed of fund it hasn’t endorsed before. The crypto world remains poised for the SEC’s next move, speculating on its implications.
Yet, it’s worth noting that crypto ETFs have dominated 2023’s top-performing fund charts. With the Valkyrie Bitcoin Miners ETF (WGMI) boasting a staggering 219% year-to-date return and ProShares Bitcoin Strategy ETF (BITO) relishing a 71% surge.
But Ark and 21Shares aren’t lone rangers. The month has witnessed Bitwise Asset Management and ProShares presenting seven ether-centric ETF proposals. The countdown to September 1st is on, as the SEC decides on Bitwise’s active spot bitcoin ETF proposition.