Ethereum ETF Race: ARK Files for Futures ETF Along With 18 Others

Diego Almada Lopez

Aug. 25, 2023

ARK Invest and 21Shares join 18 other contenders aiming to introduce an Ethereum Futures ETF to the market.

Ethereum ETF Race: ARK Files for Futures ETF Along With 18 Others

Key Takeaways

18 Ethereum ETFs submitted this month.
ARK & 21Shares seek two new Ethereum futures ETFs.

Yesterday, ARK Invest and 21Shares, submitted two new Ethereum futures ETFs to the Securities and Exchange Commission (SEC).

The first, named Active Ethereum Futures ETF (ARKZ), focuses solely on Ethereum derivatives. The second, Active Bitcoin Ethereum Strategy ETF (ARKY), will cover both Bitcoin and Ethereum futures. Both of these products will invest in Ether futures that settle in cash via the Chicago Mercantile Exchange.

The filing states that the Active Ethereum Futures ETF plans to allocate over a quarter of its assets to Ether futures. The remaining assets will be diversified into liquid, short-term investment avenues like U.S. Treasuries, money market instruments, and repurchase agreements. Following a similar asset distribution pattern, the Active Ethereum Futures ETF also proposes to allocate more than 25% of its resources to Ether futures and balance the remainder with liquid, short-term assets.

This news closely trails Bloomberg’s report from last week, indicating that the SEC might be on the brink of green-lighting an Ethereum ETF that invests in futures.

August saw significant activity in this sector with the submission of 18 different Ethereum ETFs to the SEC. These applications hail from a diverse range of funds, including Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, Grayscale, Direxion, Kelly ETFs, and Valkyrie. Breaking down the details, 10 out of these 18 ETFs are purely Ethereum-based, whereas the other eight propose a combination of Bitcoin and Ethereum investment strategies.

Standing out among the submissions is the Ether Strategy ETF by Volatility Shares, positioned as the first exclusive ETH ETF in the lineup, with an expected approval date of October 11. Additionally, in the BTC and ETH mix, the Direxion Bitcoin Ether Strategy ETF is set for potential approval on October 16.

Ethereum is trading at $1,649 at the time of writing, a near-flat performance in the last 24 hours, according to CoinGecko.

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