Ark Invest and 21Shares, two prominent players in the cryptocurrency space, have been actively pursuing the launch of a spot Bitcoin ETF. In addition to this pursuit, they have recently submitted proposals for three other crypto funds to the Securities and Exchange Commission (SEC).
The proposals were submitted to the SEC on the same day that the regulator decided to postpone its decision on the companies’ ETFs, which would hold Bitcoin directly. Empowered Funds, a subsidiary of Alpha Architect, is named as the investment adviser for these funds, and 21Shares and Ark Invest are acting as sub-advisers.
The first of these proposals is the Ark 21Shares Active Bitcoin Futures ETF (ARKA). It aims to invest in cash-settled bitcoin futures contracts on the Chicago Mercantile Exchange (CME). In addition to this, the fund may include investments in US Treasury securities, money market instruments, and repurchase agreements.
The second fund, known as the Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC), plans to invest at least 25% in bitcoin futures contracts. The rest of the assets would be allocated to cash and cash equivalents. What sets this fund apart from ARKA is its use of a proprietary trend indicator. This would help determine the fund’s allocation strategy by assessing whether the bitcoin market trend is bullish or bearish.
The third proposal, the Ark 21Shares Digital Asset and Blockchain Strategy ETF (ARKD) would allocate to bitcoin futures contracts and equities of companies across the blockchain, digital asset, and fintech industries. These proposals come after the SEC denied the companies’ proposed spot bitcoin ETF in 2021 and blocked a second attempt in May 2022. The two companies re-filed for a spot bitcoin ETF in April, only to face further delays from the SEC.
The SEC’s actions towards the spot Bitcoin ETF proposal by Ark Invest and 21Shares have garnered significant attention. The regulator has initiated proceedings to decide on the future of this Bitcoin ETF, emphasizing a thorough examination without revealing a clear stance.
Meanwhile, Bloomberg Intelligence analyst James Seyffart has provided insights indicating that the SEC’s decision or potential delay regarding the ARK 21Shares Bitcoin ETF is scheduled for November 11. The SEC must finalize its stance by January 10, marking a key development in the cryptocurrency ETFs space.
