21Shares, ARK Invest unveil suite of active crypto ETFs

Nov 15th, 2023 | By | Category: Alternatives / Multi-Asset

21Shares has teamed up with ARK Investment Management to launch a series of ETFs providing actively managed exposure to leading crypto assets.

21Shares, ARK unveil suite of active crypto ETFs

21Shares and ARK Invest have rolled out five actively managed ETFs based on crypto futures contracts.

Listed on Cboe BZX Exchange, the series consists of five funds at launch that provide exposure individually to bitcoin and ether, or combinations of these two cryptocurrencies, by investing in futures contracts.

None of the five ETFs invest directly in bitcoin, ether, or any other digital asset.

The ETFs

The ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA US) delivers 100% exposure to bitcoin through standardized bitcoin futures contracts trading on the Chicago Mercantile Exchange. The fund aims to outperform front-month bitcoin futures strategies by utilizing a selective contract rolling methodology. ARKA comes with an expense ratio of 0.70%.

The ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ US) is similar to ARKA but delivers 100% exposure to ether through standardized ether futures contracts. It also seeks to outperform front-month ether futures strategies by selectively rolling its ether contracts. ARKZ also has an expense ratio of 0.70%.

The ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY US) dynamically allocates across both bitcoin and ether futures in a bid to outperform a solely long bitcoin futures strategy over a market cycle. The strategy begins with a neutral weighting reflecting the relative market capitalizations of both cryptocurrencies and then tilts these weights based on a variety of factors including historical and expected correlations between bitcoin and ether, fundamental analysis of the markets for bitcoin and ether, as well as interest rates and other macroeconomic factors. ARKY comes with an expense ratio of 1.00%.

The ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC US) invests in a mix of bitcoin futures contracts and cash equivalent securities, utilizing traditional quantitative and on-chain valuation models to capture bitcoin’s upside potential while seeking to avoid some of its downside. ARKC comes with an expense ratio of 0.93%.

The ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD US) invests in bitcoin futures as well as a high-conviction portfolio of equities of the most promising blockchain, digital asset, and related fintech companies. ARKD comes with an expense ratio of 0.90%.

Ophelia Snyder, co-founder and President of 21Shares, commented: “This collaboration underscores our track record as an industry leader and highlights our commitment to offering the best in emerging technologies to everyday investors. It introduces our clients to a unique opportunity that simply does not exist elsewhere in the market. In an era where digital assets are gaining widespread global traction, our suite of bitcoin and ether futures ETFs empowers investors with a greater sense of security and expansive, all-encompassing exposure to this pivotal asset class.”

Cathie Wood, Founder, CEO, and CIO of ARK Invest, added: “Together with 21Shares, ARK remains committed to increasing access to the crypto asset class, offering US investors actively managed exposure to bitcoin, ether, and the broader digital asset ecosystem. In launching this comprehensive range of strategies, we aim to provide investors with tailored exposure to the crypto asset class based on their risk tolerance and investment objectives.”

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