Empowered Funds Pursues Unique Bitcoin Futures ETF Strategy

- Advertisement -

• Empowered Funds submits an application for three Bitcoin Futures ETFs.
• The distinctive ETF will incorporate strategies from Ark Invest and 21Shares.

Blending Traditional and Crypto Investment Approaches

Empowered Funds, an innovative asset management entity operating under the larger Alpha Architech umbrella as EA Advisors, recently unveiled its plans to bring three Bitcoin Futures Exchange Traded Fund (ETF) offerings to market. What sets this particular ETF apart is its foundational strategy that borrows elements from both Ark Invest and 21Shares, two influential players in the investment landscape.

A Synergistic Approach to Asset Management

While Empowered Funds remains at the helm, serving as the chief advisor for the proposed funds, the collaboration sees 21Shares and Ark Invest stepping into the roles of sub-adviser and sub-subadviser. Elaborated within the fund’s detailed prospectus, their flagship product, the ‘Ark 21Shares Active On-Chain Bitcoin Strategy ETF’, pledges to allocate a substantial portion of its capital, up to 25%, to digital assets. Moreover, the fund emphasizes its focus on blockchain strategy ETF transactions taking place on the established Chicago Mercantile Exchange.

Exchange Traded Funds (ETFs) have historically been viewed as a potent vehicle to usher traditional, affluent institutional investors into the burgeoning cryptocurrency domain. Their allure lies in the rigorous regulatory scrutiny they’re subject to, making them a safer bridge between the conventional financial world and the dynamic crypto universe. Such products cater to institutions by providing a familiar framework reminiscent of their usual investment vehicles.

Reflecting the ever-evolving crypto landscape, Empowered Funds’ Bitcoin futures ETF is designed to adapt its strategies based on prevailing market temperatures. In bullish times, the fund has the capacity to channel its entire capital base towards the underlying assets. Conversely, in a bear market scenario, the fund may divert up to 75% of its holdings into the stability of U.S. Treasury Securities.

Anticipation Builds for a Spot Bitcoin ETF

While there’s no shortage of Bitcoin and Ethereum futures ETFs seeking to carve out their space, many eyes are on giants like Bitwise, awaiting the green light from the United States Securities and Exchange Commission (SEC).

Though these advancements signal maturation within the sector, the ultimate prize for many investors remains the elusive Bitcoin spot ETF. Word from the SEC suggests that decisions on applications, especially those from major contenders like BlackRock, won’t materialize until the forthcoming year. Nonetheless, the industry remains hopeful, with many confident that a spot Bitcoin ETF will grace the markets in the not-so-distant future.