Empowered Funds Partners with Ark Invest and 21Shares to Unveil Trio of Bitcoin Futures ETFs

• ETF Trio: Empowered Funds files for three Bitcoin futures ETFs, partnering with Ark Invest and 21Shares.
• Diverse Strategies: From active on-chain strategies to blockchain investments, the ETFs present varied asset allocation methods.

Empowered Funds Spearheads Bitcoin Futures ETF Initiatives

Taking a bold step in the evolving world of cryptocurrency investment, Empowered Funds, under the guidance of its parent entity Alpha Architect (known as EA Advisers), has made strides to launch three distinctive Bitcoin futures ETFs. As the Financial Times disclosed, while the ETFs will wear the badges of 21Shares and Ark Invest, the governance structure unfolds with a twist: 21Shares helming the subadviser role and Ark Invest stepping into the shoes of the sub-subadviser.

A Glimpse into the ETF Strategies

1. Ark 21Shares Active Bitcoin Futures ETF: Claiming the premier spot in this ETF trio, this fund aims its sights predominantly at Bitcoin futures trading, rooting its operations on the prominent Chicago Mercantile Exchange. This flagship ETF will also serve as the pillar for its subsequent Bitcoin-centric counterparts.
2. Ark 21Shares Active On-Chain Bitcoin Strategy ETF: Occupying the second slot, this fund showcases a dynamic approach, earmarking at least a quarter of its resources for the Digital Asset and Blockchain Strategy ETF. Harnessing a unique trend-detection model, the ETF pledges to modify its asset distribution approach in alignment with the ebb and flow of the Bitcoin market. In optimistic market phases, the ETF possesses the latitude to fully commit its assets to the principal ETF. Conversely, during downturns, the fund could opt to invest up to three-quarters of its assets into instruments such as US Treasury securities and money market tools. However, the ultimate discretion over asset allocation remains in the hands of the dedicated investment team.
3. Ark 21Shares Digital Asset and Blockchain Strategy ETF: Rounding off the triad, this ETF demonstrates a zest for investments synonymous with digital assets and businesses at the crossroads of blockchain, fintech, and related tech sectors. The fund reserves the flexibility to channel up to 80% of its assets either into the foundational Bitcoin futures ETF or other assets, leaving a potential 20% for investment in safe havens like Treasuries or even real estate investment trusts.

Delving deeper into the operational mechanics, Ophelia Snyder, the influential co-founder and president of 21Shares, is slated to steward these funds as their portfolio manager.

The underpinnings of this move are speculated to be rooted in Ark and 21Shares’ intent to amplify their Bitcoin ETF offerings, potentially capitalizing on the future prospects of these ETFs to bolster their overarching ETF strategies. With the U.S. Securities and Exchange Commission treading cautiously on spot Bitcoin ETF approvals, these financial titans are hunting for novel pathways to burgeon their crypto fund portfolios.

Echoing the robust momentum of this domain, Alpha Architect, the cornerstone of Empowered Funds, boasts a robust roster of 15 ETFs, amassing a staggering $1.9 billion as of the end of July. The year culminating in this date saw an inflow of a remarkable $717 million into these funds, painting a vivid picture of the surging appetite for crypto-investment tools.