Investment firms ARK Invest and 21Shares are joining forces to seek approval for two Ethereum futures exchange-traded funds (ETFs). This move comes in response to indications that the US Securities and Exchange Commission (SEC) might soon start greenlighting such applications.
The proposed ETFs are named “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY), as detailed in their recent filing on August 24.
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ARKZ is designed to allocate a minimum of 25% of its assets into cash-settled Ethereum futures contracts, which are similar to those traded on the Chicago Mercantile Exchange. Conversely, ARKY will contain futures contracts for both Bitcoin and Ethereum. Empowered Funds has been designated as the investment advisor for these two ETFs.
This collaboration follows their prior successful launch of a Bitcoin ETF in partnership. Despite previous setbacks, wherein the SEC rejected their applications, the investment duo has responded to the SEC’s concerns by incorporating surveillance-sharing agreements into their proposals. Notably, this collaboration follows ARK Invest and 21Shares’ successful partnership in introducing a Bitcoin ETF to the market back in 2021.
Despite initial setbacks, the SEC’s stance appears to be shifting. Having previously rejected ARK Invest and 21Shares’ proposals in March 2022 and January, the regulatory body now seems more open to approval, particularly with the inclusion of surveillance-sharing agreements in applications. This alteration was encouraged by the SEC’s labeling of many Bitcoin spot ETF applications as inadequate.
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This evolving regulatory environment also coincides with similar anticipation for Bitcoin-related ETFs, including Ark 21Shares Active Bitcoin Futures ETF (ARKA) and Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC). As the SEC’s decision draws closer, industry experts are watching closely to see how these collaborative ventures could shape the landscape of cryptocurrency investments in the United States.