Investment management firm ARK Invest, led by pro-Bitcoin investment veteran Cathie Wood, has announced a partnership with exchange-traded product (ETP) provider 21Shares to launch a new suite of digital asset exchange-traded funds (ETFs), expanding the investment options for those interested in including digital assets in their portfolios.
The collaboration, as per the 21Shares website, aims to utilize on-chain signals and crypto-native expertise to provide long-term capital appreciation through investments in Bitcoin (BTC) and Ether (ETH) futures contracts. This strategic move reflects the increasing integration of digital assets into traditional investment mechanisms, catering to the growing interest in cryptocurrencies from institutional and retail investors alike.
Foreseeing the rise in demand for digital asset investment vehicles, ARK and 21Shares are set to debut five products under this ETF suite in the upcoming week, with plans to list them on the Chicago Board Options Exchange (CBOE). Notably, the suite will not offer direct investment opportunities in spot BTC, with the disclaimer advising investors looking for exposure to BTC to consider alternative investment options. This decision reflects the complexities and risks associated with directly investing in cryptocurrencies, particularly in the volatile spot market.
In addition to Bitcoin and Ethereum futures, the ARK 21Shares Blockchain and Digital Economy Innovation ETF is designed to offer investors exposure to the blockchain industry by investing in the public equities of companies operating within this sector. By doing so, the ETF aims to provide a comprehensive and holistic approach to gaining exposure to the technological advancements and growth potential within the blockchain industry, adding a layer of diversification to the investment suite.
This development comes amidst speculation surrounding the potential approval of Bitcoin ETF filings by the United States Securities and Exchange Commission (SEC). Bloomberg analysts have suggested that the SEC might approve all 12 ETF filings if they decide to embrace the concept. However, this remains a possibility, and there is no concrete confirmation from the SEC regarding the approval of Bitcoin ETF filings.
As the collaboration between ARK Invest and 21Shares marks a significant step in the maturation and diversification of the digital asset investment landscape, it reflects the continued evolution and integration of cryptocurrencies into the traditional financial ecosystem. With the launch of these ETFs, investors can now access a broader range of investment vehicles in the digital asset space, signaling the growing recognition and acceptance of cryptocurrencies as a legitimate and valuable asset class.