ARK Invest and 21Shares file two Ethereum futures ETFs

ARK Invest, the investment company, and crypto-asset ETP provider 21Shares filed заявку to launch two exchange-traded funds (ETF) based on Ethereum futures.

According to the filing with the SEC, the ARK 21Shares Active Ethereum Futures ETF (ARKZ) will invest up to 25% of assets in USD-denominated standard contracts, for example, on the Chicago Mercantile Exchange.

“The fund does not invest directly in ether and does not provide direct access to spot Ethereum. Investors seeking exposure to the price of ether itself should consider other investments”, the filing states.

Since derivative settlements typically occur monthly or quarterly, ARKZ will hold contracts during these periods.

The ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) plans to allocate assets between Ethereum and Bitcoin futures. The fund will devote up to 25% of assets to these purposes.

“Bitcoin, Ether and their futures are relatively new investments that carry unique and significant risks and may be more volatile than other assets. The value of investments in the fund could fall sharply and unexpectedly, including to zero. You could lose all of your investments”, the firms warned.

The remainder of ARKZ and ARKY portfolios will consist of U.S. Treasury securities, REPO and other market instruments.

In early August, six firms, including Grayscale, ProShares, Bitwise and VanEck, sought SEC clearance for Ethereum futures ETFs. Valkyrie joined them later.

In April, ARK Invest and 21Shares filed a joint application to launch a spot Bitcoin ETF. In August, the regulator delayed a decision regarding the firms’ proposal.