- Leading investment firms ARK Invest and 21Shares have jointly applied for two Ethereum futures exchange-traded funds (ETFs).
- The proposed ETFs were detailed in an application submitted to the SEC on August 24th. ARKZ plans to allocate at least 25% of its total assets to cash-settled Ethereum futures contracts.
- These investment firms are also eagerly awaiting the results of their applications for the “Ark 21Shares Active Bitcoin Futures ETF” (ARKA) and the “Ark 21Shares Active On-Chain Bitcoin Strategy ETF” (ARKC).
ARK Invest and 21Shares investment firms have made two joint applications for an Ethereum Futures ETF; the possibility of approval for ETH ETFs is increasing.
ARK and 21Shares Take Action for ETH ETF
Leading investment firms ARK Invest and 21Shares have jointly applied for two Ethereum futures exchange-traded funds (ETFs). This move coincided with recent reports suggesting that the U.S. Securities and Exchange Commission (SEC) may be in the process of approving Ethereum ETF applications.
The proposed ETFs were detailed in an application submitted to the SEC on August 24th. ARKZ plans to allocate at least 25% of its total assets to cash-settled Ethereum futures contracts, including those on the Chicago Mercantile Exchange (CME).
Additionally, ARKY will include both Bitcoin and Ethereum futures contracts in its composition. Empowered Funds will serve as the investment advisor for these Ethereum products. Notably, ARK Invest and 21Shares previously collaborated to launch a spot Bitcoin ETF in 2021.
The SEC had previously rejected both of ARK Invest’s applications for a Bitcoin spot ETF. The first application was made in March 2022, followed by another in January. Subsequently, BlackRock, one of the largest investment firms with $10 trillion in assets, submitted its most recent Bitcoin spot ETF application a few months prior in April.
Ethereum ETF Application…
The SEC’s oversight has led to a significant development where many Bitcoin spot ETF applications were deemed insufficient. In response, ARK 21Shares and other applicants included surveillance sharing agreements as a strategic measure in their applications.
In addition to the recent Ethereum ETF applications, these investment firms are also eagerly awaiting the results of their applications for the “Ark 21Shares Active Bitcoin Futures ETF” (ARKA) and the “Ark 21Shares Active On-Chain Bitcoin Strategy ETF” (ARKC).
This move demonstrates the increasing interest of the investment community in entering the evolving cryptocurrency market. Ethereum garners significant attention due to its smart contract capabilities and role in the decentralized finance (DeFi) ecosystem. This partnership coincides with a period in which financial institutions are increasingly exploring opportunities in the cryptocurrency market.
While the SEC’s previous rejections highlighted the stringent regulatory environment, recent developments indicate a potential change in stance. The expectation of Ethereum ETF approvals demonstrates regulators’ acceptance of the maturation of the cryptocurrency market and its integration into traditional financial structures.
