Ark Invest and 21Shares launch a Digital Asset ETF suites

Ark Invest and 21Shares launch a Digital Asset ETF suites

Time Stamp: November 17, 2023 1:22 AM
  • Ark Invest is gearing up to launch five new digital assets EFT products in partnership with 21Shares.
  • The Digital asset ETF suits will be listed on the Chicago Board Options Exchange(CBOE).
  • The ARK crypto strategy is a high-conviction portfolio that invests primarily in BTC and ETH.

The crypto industry has significantly grown over the last two decades. Its franchise has expanded beyond the financial institutions, ushering in a new wave of decentralized applications. Its potential and rapid rise to fame soon caught the eye of many investors and companies. Soon, cryptocurrency became a sought-after commodity in different industries. 

For instance, its high valuation, seamless transaction ate, low fees, and secure nature led to a substantial surge of crypto payment gateways. In addition, some developers sought to create a version of cryptocurrency that alleviated its dependence on volatility. This led to the creation of stablecoins like Tether. Its applications even inspired innovators to create a digital currency based on the fiat currency of any nation, leading to the development of CBDC.

The crypto industry has become the foundation of many emerging markets and technologies. In recent developments, ARK investment, led by pro-BTC investments veteran Cathie Wood, has partnered with the exchange-traded product provider 21Shares. According to an official press release, both organizations will collaborate to launch a digital asset exchange-traded funds(EFTs) Suite. This new feature aligns with the ARK crypto strategy, seeking to dominate the digital asset sphere.

Ark Invest partners with 21Shares, launching a digital asset ETF suite

With Bitcoin finally regaining a substantial space, the entire crypto ecosystem is gearing up for its next Bull run. Investors, crypto traders, and innovators are gearing up to take advantage of this new high in the crypto ecosystem. Several organizations have established blockchain platforms, crypto payment gateways, and other web3-based projects to profit from the industry’s revival.

Cathie Wood’s Ark Invest is the same as it initializes one of its projects from the Ark crypto strategy. In recent news, Ark Invest is gearing up to launch five new digital assets EFT products in partnership with 21Shares. According to Cathie Wood, this latest move will provide a robust set of options for investors looking to get digital assets into their trading portfolio. The promise of next year’s Bull run has provided Ark Invest the perfect opportunity to roll out this service.

Ark-Invest-Cathie-Wood

Cathie Wood, CEO of Ark Invest, aims to actualize her companies crypto strategy to dominate the industry.[Photo/Medium]

According to the 21Shares website, the clients will utilize on-chain signals and their innate crypto experience to deliver “long-term capital appreciations.” The digital asset ETF suites will mainly focus on Bitcoin and Ether future contracts, giving the reliability of both assets. In addition, the digital asset ETF suites will use crypto-specific insight alongside its broad trading indicators to ensure accuracy in prediction.

Also, Read Blockchain Payments: The New Frontier of Finance Faces Hurdles and Hope.

The five digital assets ETF suits include:

  • ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA);
  • ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ);
  • ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC);
  • ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY); and
  • ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD).

In addition, the Digital asset ETF suits will be listed on the Chicago Board Options Exchange(CBOE). Although Ark Invest has classified, the suits do not enable direct investment in cryptocurrency. They said, “Neither the funds nor the underlying ETF invest directly in Bitcoin or other digital assets or maintain direct exposure to spot Bitcoin. Investors seeking direct exposure to the price of Bitcoin should consider an investment other than the funds.”

Anticipated Spot Bitcoin EFTs

Aside from coinciding with the Ark crypto strategy, the digital asset ETF suites play along the much-anticipated spot Bitcoin EFTs. For those unaware, a spot bitcoin EFT is a type of exchange-traded fund aiming to provide investors with direct exposure to the current market price of Bitcoin.

The term sport refers to the immediate current price of any underlying asset. Unfortunately, the intervention of the US SEC has made this feature a hot topic. Thus, most organizations have yet to offer such services to the public. Fortunately, recently, the US gained a change of heart and embarked on talks with Grayscale Investment over its transfer into sport Bitcoin ETFs.

Cathie Wood has claimed that her firm and 21Shares have communicated with the US SEC over their spot Bitcoin product’s filing. Generally, the outcome of their petition significantly hinges on how well the Grayscale talks go.

The Ark Invest’s crypto strategy

Cathie Wood has geared her investment firm to enter the crypto space for some time. Ark Invest drafted a crypto strategy encompassing several aspects to smoothen this procedure and ensure success.

One of the primary initiatives of the ARK crypto strategy involved a partnership with Eaglebrook Advicers. The collaboration shed light on various ways to offer the ARK cryptocurrency and ARK crypto asset strategies as separately managed accounts for financial advisors and wealth managers. Cathy Wood said, “The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration amongst other benefits.“

Also, Read: Coinazer Expands from Nigeria to Brazil, Boosting Africa’s Crypto Ecosystem.

The ARK crypto strategy is a high-conviction portfolio that invests primarily in BTC and ETH. The partnership with 21Shares is the first of its initiatives to dive into capitalizing on the monetary revolution of digital currency. Cathie Wood added, “We’re thrilled to be offering actively managed crypto strategies to advisors during a time when, we believe, much of the speculative behaviors have died down. We believe this presents an attractive entry point for investors.“

21Shares responded to this partnership by elaborating, “The Blockchain and Digital Economy Innovation ETF (ARKD) is one of the first actively managed exchange-traded funds (ETF) that invests in both bitcoin futures and public equities of companies engaged in the blockchain industry and/or digital economy, providing holistic exposure to the growth of blockchain technology. ARKD focuses on a concentrated, high-conviction portfolio of equities through a proprietary valuation model.“

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