Cathie Wood’s Ark Invest has partnered with 21Shares to introduce a range of digital asset exchange-traded funds (ETFs) that will focus on Bitcoin and Ethereum futures and blockchain technology. The suite consists of five ETFs, including the ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA) and the ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ).
Blending Investments in Futures Contracts and Blockchain Companies
These ETFs are designed to combine investments in futures contracts with stakes in companies that are actively involved in the blockchain industry. The goal of these ETFs is to provide long-term capital appreciation through strategic investments.
Listing on the Chicago Board Options Exchange
The ETFs will be listed on the Chicago Board Options Exchange (CBOE) and cater to investors seeking to incorporate digital assets into their portfolios. It is important to note that these funds and the underlying ETFs do not directly invest in Bitcoin or other digital assets.
According to 21Shares, they are the largest issuer of crypto exchange products (ETPs) in the world, having attracted over $1 billion in assets under management (AUM). However, it’s worth mentioning that ETPs issued by 21Shares AG are not available in the United States.
“Neither the Funds nor the Underlying ETF invest directly in bitcoin or other digital assets, or maintain direct exposure to ‘spot’ bitcoin.” – 21Shares
Ark Invest currently offers six active ETFs in the United States, three of which are listed on the CBOE.
Recent Portfolio Adjustments
Ark Invest, under the leadership of Cathie Wood, has recently made some adjustments to its portfolio. It acquired shares in Jack Dorsey’s Block Inc while selling portions of its Grayscale Bitcoin Trust holdings.
Through its flagship ARK Innovation ETF, ARK Next Generation Internet ETF, and Ark Fintech Innovation ETF, Ark Invest purchased 113,326 shares of Block Inc. The total value of the transaction amounted to $5.61 million, based on Block’s closing price of $49.52 on November 6.
On the same day, Ark Invest decreased its investment in the Grayscale Bitcoin Trust by selling shares worth $3.76 million. The closing price of Grayscale Bitcoin Trust at the time was $26.95. Additionally, Ark Next Generation Internet ETF (ARKW) sold $1.34 million of GBTC.
Cathie Wood has consistently shown her interest and confidence in cryptocurrency and Bitcoin. In a Bloomberg interview in November 2022, Wood reiterated her prediction that the price of Bitcoin will reach $1 million by the end of this decade.
