ARK Invest, in collaboration with 21Shares, has submitted applications for two new exchange-traded funds (ETFs) centered around Cryptocurrency is a form of digital or virtual currency that uses cryptography for security and operates independently of a central authority or traditional banking system. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. Key Features: • Decentralization: Cryptocurrencies operate on a decentralized network of computers, meaning no central authority governs or regulates it. • Cryptography: Secure transactions and... futures. The proposals, detailed in an initial prospectus dated August 24, include an ETF exclusively investing in Ethereum futures (ARKZ) and another covering both Bitcoin and Ethereum futures (ARKY). These applications, awaiting approval from the U.S. Securities and Exchange Commission (SEC), aim to achieve long-term capital appreciation.
The ARK 21Shares Active Ethereum Futures ETF (ARKZ) will allocate investments to standardized Ethereum futures contracts traded in U.S. dollars, regulated by the Commodity Futures Trading Commission (CFTC). These contracts are expected to be offered on exchanges like the Chicago Mercantile Exchange (CME). It’s important to note that these ETFs won’t provide direct exposure to the spot prices of cryptocurrencies, relying on futures contracts for exposure instead.