Investment company ARK Invest and crypto ETP provider 21Shares have submitted applications to launch two different exchange-traded funds (ETFs) based on Ethereum futures.
The funds, called the ARK 21Shares Active Ethereum Futures ETF (ARKZ) and ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), will each allocate up to 25% of their funds to US dollar-settled contracts from the Chicago Mercantile Exchange.
However, the funds will not directly invest in Ethereum but will instead hold contracts during monthly and quarterly futures settlement periods.
The remainder of the funds will be held in US Treasury bonds, repo agreements, and other financial market instruments.
ARK Invest and 21Shares previously filed a joint application for a spot Bitcoin ETF with the SEC, which the regulator postponed a decision on in August.
These new Ethereum ETFs join the similar requests from Grayscale, ProShares, Bitwise, VanEck, and Valkyrie.
Investors should be warned that investments in Bitcoin, Ethereum, and futures can be risky and volatile, and the cost of investment can drastically drop, including to zero.
