According to the Financial Times, Empowered Funds is seeking SEC approval for 3 new Bitcoin futures ETFs in collaboration with Ark Invest and 21Shares
Empowered Funds, a subsidiary of Alpha Architect operating as EA Advisers, has applied to introduce three new Bitcoin futures exchange-traded funds (ETFs) under the Ark Invest and 21Shares labels.
While these ETFs will bear the branding of 21Shares and Ark, the actual management positions will be designated differently, according to the report: 21Shares will serve as the subadvisor, and Ark will serve as the sub-subadvisor.
The Ark 21Shares Active Bitcoin Futures ETF will allocate most of its assets to Bitcoin futures trading on the Chicago Mercantile Exchange. This ETF will also be the foundation for the two other Bitcoin-related ETFs.
The second ETF in the series, the Ark 21Shares Active On-Chain Bitcoin Strategy ETF, will allocate at least 25% of its assets to the Digital Asset and Blockchain Strategy ETF.
Using a proprietary trend indicator model, this fund intends to adjust its asset distribution strategy in response to bullish or adverse Bitcoin market conditions. During favorable market conditions, the ETF can invest all its assets in the underlying ETF.
The fund will invest up to 75% of its assets in US Treasury securities, money market instruments, and repurchase agreements in the event of adverse market conditions. This ETF will modify its exposure to Bitcoin futures based on its trend analysis, but its investment team will retain complete control over its allocation strategy.
Simultaneously, the Ark 21Shares Digital Asset and Blockchain Strategy ETF, the third in the series, will invest in the foundational ETF and investigate investments offering exposure to digital assets and companies involved in the blockchain, digital asset, technology, and fintech sectors.
This fund may invest up to 80% of its assets in Bitcoin futures ETFs or alternative assets, with the remaining 20% invested in cash equivalents such as Treasuries and REITs.
ETFs Fees Remain unknown
According to the Financial Times, while the precise fees for these ETFs remain unknown, the filing reveals that Ophelia Snyder, co-founder, and president of 21Shares, will serve as portfolio manager for these funds.
Experts hypothesize that Ark and 21Shares intend to diversify their Bitcoin ETF offerings by launching futures ETFs to enhance their overall ETF strategies. The Securities and Exchange Commission’s recent delay in approving spot Bitcoin ETFs has prompted these firms to pursue alternative expansion strategies for their crypto funds.
Despite obstacles in approving spot Bitcoin ETFs, it is evident that Ark is leveraging its existing resources to expand its selection of crypto funds. Alpha Architect, the parent company of Empowered Funds, has 15 ETFs with a total asset value of $1.9 billion as of July 31.
In the preceding year, investors have poured a considerable $717 million into these funds, highlighting the rising demand for crypto-related investment products.
