In a collaborative effort, investment firms ARK Invest and 21Shares have submitted applications for two Ethereum futures exchange-traded funds (ETFs). This move comes in the wake of recent reports suggesting that the U.S. securities regulator might soon commence the approval process for such applications.
The proposed ETFs are named the “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and the “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY), as detailed in a filing to the Securities and Exchange Commission on August 24.
As outlined in the filing, ARKZ is designed to allocate a minimum of 25% of its total assets to cash-settled Ethereum futures contracts, including those offered by the Chicago Mercantile Exchange (CME).
On the contrary, ARKY will encompass futures contracts for both Bitcoin and Ethereum.
Empowered Funds has been designated as the investment advisor for these two Ethereum-related products. ARK Invest and 21Shares initially collaborated to introduce a Bitcoin exchange-traded fund (ETF) based on spot prices back in 2021.
The Securities and Exchange Commission (SEC) declined their initial two attempts in March 2022 and January. A subsequent Bitcoin spot ETF application was submitted in April, approximately two months prior to the $10 trillion asset management giant BlackRock submitting its own application.
However, the SEC recently deemed several of the Bitcoin spot ETF applications as insufficient, prompting ARK 21Shares and other applicants to include a surveillance sharing agreement in their submissions.
Additionally, the investment firms are eagerly anticipating the outcomes of the Ark 21Shares Active Bitcoin Futures ETF (ARKA) and the Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).