The Catherine Wood-led Ark Invest will launch a crypto ETF suite with 21Shares, the ETP behemoth.
The countdown, which started earlier, is set to launch the solution on Monday, 13th November 2023, on the Chicago Board Options Exchange (CBOE).
The fivefold product suite has a broad industry focus with several unique combinations.
The ETF suite follows the joint “the ARK 21Shares Bitcoin ETF” filed by the duo earlier in the year with the SEC.
The “ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA)” is focused on Bitcoin exposure via futures and aims to surpass the token’s performance through rollovers of its contracts.
The “ARK 21Shares Active On-Chain Bitcoin Strategy (ARKC)” minimizes exposure by investing in Bitcoin futures and related instruments.
The “ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD) ” has a broad industry focus by investing in bitcoin futures and blockchain companies (via public equity).
The “ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY)” is a dual-purpose ETF that includes Bitcoin and Ether futures.
The ” ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ)” focuses on Ether futures, exposing investors to the world’s second-largest token ecosystem.
21Shares indicated it will not provide direct access to Bitcoin and crypto spot markets.
According to a statement by the ETP provider, “Leveraging onchain signals and our crypto-native experience, the suite aims to deliver long-term capital appreciation through strategic investments in Bitcoin and Ethereum futures contracts, and the application of blockchain technologies.”
The SEC has been reluctant to approve ETF applications despite their apparent appeal.
The SEC’s ETF Application Drama Continues
As the SEC enters the ETF approval window, the regulator hasn’t indicated when it will approve the applications.
The November 8th-17th window for approvals will likely come and go.
For example, the SEC is in ongoing talks with Grayscale following its court defeat.
This combative approach has been the regulator’s stance towards industry issues this year.
It may be changing, though, with increased legal issues and the cryptospace’s rising mainstream popularity.
Should the regulator approve any application, other administrative hurdles will push any launch to January.
Cryptocurrency prices have risen sharply in anticipation of an ETF approval.
ETFs Boost Crypto Adoption Efforts
The nature of ETFs makes them a favorable option for many newbies to dip their toes in the cryptospace without directly getting involved with digital assets.
Adoption efforts have, at best, slowed because of ongoing regulatory challenges. ETFs provide a way out while governments figure out what belongs where in the space.
The current applications by BlackRock and twelve other behemoths have boosted the industry and have provided cover to the asset class, making them acceptable.
Diversification of several assets within one ETF provides several alpha opportunities.
Investors are shielded from high-risk scenarios, creating broad options for anyone willing to take the plunge.
