ARK INVEST, 21SHARES JOIN QUEUE TO OFFER ETHEREUM FUTURES ETF

Last updated: June 19, 2025, 21:57 | Written by: Erik Voorhees

The world of cryptocurrency investments is heating up, and the latest development promises to bring even more opportunities for both seasoned investors and newcomers alike.Investment giants ARK Invest, led by Cathie Wood, and 21Shares, a leading issuer of crypto exchange-traded products (ETPs), have jointly filed applications with the U.S.Securities and Exchange Commission (SEC) to launch two Ethereum futures ETFs. ARK 21Shares has filed another two more ETF applications to the SEC the first an Ethereum futures ETF and the other a hybrid Bitcoin Ethereum strategy ETF. It comes after reports emerged the regulator could start approving Ethereum ETFs in the coming months.This move comes amidst growing anticipation that the SEC might finally be ready to approve Ethereum ETF applications, potentially opening the floodgates for institutional and retail investment in the second-largest cryptocurrency by market capitalization.This collaborative effort highlights the increasing interest in providing regulated and accessible investment vehicles for digital assets, demonstrating a significant step forward for the crypto industry.

The proposed Ethereum futures ETFs, named ARK 21Shares Active Ethereum Futures ETF (ARKZ) and ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), represent a strategic move to capitalize on the growing demand for exposure to Ethereum and its potential for future growth. The 2 projected Ethereum futures ETFs are ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), according to an Aug. 24 filing to the Securities and Exchange Commission.With the SEC seemingly warming up to the idea of crypto ETFs, this joint venture positions ARK Invest and 21Shares at the forefront of a potentially transformative shift in how investors access and interact with the crypto market.As the regulatory landscape evolves, these developments signal a maturing market and increased institutional participation, offering exciting possibilities for the future of digital asset investment.

What are ARKZ and ARKY?Diving Deeper into the Proposed Ethereum Futures ETFs

The two proposed Ethereum futures ETFs have distinct strategies, each designed to cater to different investment objectives and risk tolerances. The co-filing comes just a week after reports emerged that the SEC is likely to greenlight Ethereum ETF applications.Continue reading ARK Invest, 21Shares join queue to offer EthereumUnderstanding the nuances of each fund is crucial for investors considering adding them to their portfolios.

ARK 21Shares Active Ethereum Futures ETF (ARKZ): Pure ETH Exposure

ARKZ, as its name suggests, aims to provide investors with 100% exposure to Ether (ETH) through investing in Ether futures contracts.This actively managed ETF seeks to outperform ETH by actively rolling its futures contracts, attempting to optimize returns by strategically timing the buying and selling of contracts as they approach expiration. Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United States securities regulator could soon begin approving applications. The two proposed Ethereum futures ETFs are ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the ARK 21Shares Active Bitcoin Ethereum StrategyThe active management component allows for flexibility in adapting to market conditions and potentially mitigating risks associated with futures trading.

Here's a breakdown of the key features of ARKZ:

Investment Objective: To provide investors with capital appreciation by actively managing exposure to Ether futures contracts.
Exposure: 100% exposure to Ether (ETH).
Management Style: Actively managed, allowing for strategic adjustments to contract rolling based on market conditions.
Target Audience: Investors seeking direct exposure to Ether price movements through a regulated investment vehicle.

The active management aspect of ARKZ offers potential advantages, but it also comes with higher management fees compared to passively managed ETFs. Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United States securities regulator couldInvestors should weigh the potential benefits of active management against the associated costs when considering this ETF.

ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY): A Hybrid Approach

ARKY takes a different approach by combining exposure to both Bitcoin (BTC) and Ethereum (ETH).While details are still emerging, this hybrid ETF likely aims to provide investors with a diversified exposure to the two leading cryptocurrencies, potentially mitigating risks associated with investing solely in one digital asset.The specific allocation between Bitcoin and Ethereum will likely be determined by the fund managers based on market analysis and investment strategy.

Here's what we know about ARKY:

Investment Objective: To provide investors with capital appreciation by actively managing exposure to both Bitcoin and Ethereum futures contracts.
Exposure: A combination of Bitcoin (BTC) and Ethereum (ETH). The co-filing comes just a week after reports emerged that the SEC is likely to greenlight Ethereum ETF applications. Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United States securities regulator could soon begin approving applications.The specific allocation strategy is yet to be fully disclosed.
Management Style: Actively managed, allowing for strategic adjustments to contract rolling and asset allocation.
Target Audience: Investors seeking diversified exposure to the two leading cryptocurrencies through a regulated investment vehicle.

ARKY offers a potentially more balanced approach to crypto investing, providing exposure to both the established market leader (Bitcoin) and the rapidly growing Ethereum ecosystem. The two proposed Ethereum futures ETFs are ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), according to an Aug. 24 filing to the Securities and Exchange Commission.This diversification could be attractive to investors seeking to reduce risk while participating in the growth potential of the crypto market.

Why Ethereum Futures ETFs Now? ARK Invest, 21Shares join queue to offer Ethereum futures ETFThe SEC's Evolving Stance

The recent surge in applications for Ethereum futures ETFs is largely driven by reports suggesting a potential shift in the SEC's stance on crypto-related investment products. Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the UnitedAfter years of cautious and often skeptical reviews, there are indications that the SEC might be willing to approve Ethereum ETFs in the coming months. [ Decem ] Ethereum (ETH) Price Action Shows Strength as Bulls Target $3,800 Mark Ethereum [ Novem ] Key Levels to Watch as ETH Trades Near $3,600 EthereumSeveral factors contribute to this evolving regulatory landscape:

Maturity of the Ethereum Market: Ethereum has evolved into a more mature and established asset, with a robust ecosystem and increasing institutional adoption.This increased maturity may make the SEC more comfortable with approving investment products tied to Ethereum.
Precedent Set by Bitcoin Futures ETFs: The approval of Bitcoin futures ETFs in 2021 paved the way for similar products tied to other cryptocurrencies. Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United ARK Invest, 21Shares join queue to offer Ethereum futures ETF - BitTripperThis precedent suggests that the SEC is willing to consider futures-based crypto ETFs under certain conditions.
Growing Pressure from the Industry: The crypto industry has been actively advocating for the approval of crypto ETFs, arguing that they provide a regulated and accessible way for investors to participate in the digital asset market.This pressure, combined with increased institutional interest, may be influencing the SEC's decision-making process.

However, it's important to remember that SEC approval is not guaranteed. [ad_1]Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United States securities regulator could soon begin approving applications. The two proposThe SEC will carefully review each application, considering factors such as market stability, investor protection, and regulatory compliance.The outcome of these reviews will have a significant impact on the future of Ethereum ETFs and the broader crypto investment landscape.

Understanding Ethereum Futures Contracts

Both ARKZ and ARKY propose to gain exposure to Ethereum through Ethereum futures contracts. Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United States securities regulator could soon begin approving applications.Understanding what these are and how they work is crucial for comprehending the investment strategy of these ETFs.

A futures contract is an agreement to buy or sell an asset at a predetermined price on a specific date in the future. The co-filing comes just a week after reports emerged that the SEC is likely to greenlight Ethereum ETF applications Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds afterIn the case of Ethereum futures contracts, the underlying asset is Ether (ETH).These contracts are traded on regulated exchanges, providing a level of transparency and security that is not always present in the broader crypto market.

Here are some key characteristics of Ethereum futures contracts:

Standardized: Futures contracts are standardized in terms of quantity, quality, and delivery date.
Leveraged: Futures contracts allow investors to control a large amount of the underlying asset with a relatively small amount of capital. ARK Invest, 21Shares join queue to offer Ethereum futures ETF ARK Invest, 21Shares join queue to offer Ethereum futures ETF. AugThis leverage can amplify both gains and losses.
Marked-to-Market: Futures contracts are marked-to-market daily, meaning that profits and losses are credited or debited to the investor's account each day.
Expiration Date: Futures contracts have an expiration date, at which point the contract must be settled. Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged Sunday, Aug All newsThis can be done either through physical delivery of the underlying asset (in some cases) or through cash settlement.

When investing in Ethereum futures ETFs, it's essential to understand the risks associated with futures trading, including leverage, volatility, and the potential for significant losses. ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ) is an actively managed exchange-traded fund (ETF) that targets 100% exposure to ether (ETH), through investing in ether futures contracts. ARKZ aims to outperform ETH by actively rolling its futures contracts.Investors should also be aware of the impact of ""rolling"" futures contracts, which involves replacing expiring contracts with new ones.This process can impact returns and may be subject to costs.

The Potential Benefits of Ethereum Futures ETFs

The introduction of Ethereum futures ETFs offers several potential benefits to investors:

Accessibility: ETFs provide a regulated and accessible way for investors to gain exposure to Ethereum without directly owning or managing the cryptocurrency.This eliminates the need for specialized wallets, exchanges, and security measures.
Diversification: ETFs can provide diversification within a portfolio, allowing investors to allocate a portion of their assets to Ethereum without taking on excessive risk.
Liquidity: ETFs are typically highly liquid, meaning that investors can easily buy or sell shares on exchanges. Ark Invest and 21Shares are listed as sub-advisers on the proposed ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), according to a Thursday filing.This liquidity can be particularly attractive in the volatile crypto market.
Transparency: ETFs are required to disclose their holdings on a regular basis, providing investors with transparency into the fund's investment strategy.
Tax Efficiency: ETFs can offer certain tax advantages compared to directly owning cryptocurrencies. (Consult with a tax professional for personalized advice).

These benefits make Ethereum futures ETFs an attractive option for investors seeking to participate in the growth potential of Ethereum in a regulated and convenient manner.

Risks to Consider Before Investing

Despite the potential benefits, it's crucial to acknowledge the inherent risks associated with investing in Ethereum futures ETFs:

Volatility: The cryptocurrency market is known for its volatility, and Ethereum futures ETFs are no exception. Join the Trading Community: Learn Earn with BingX. Today s Cryptocurrency Headline. Investment firms ARK Invest and 21Shares have teamed up to apply for two Ethereum futures exchange-traded funds after reports emerged last week that the United States securities regulator could soon begin approving applications.The price of Ethereum can fluctuate dramatically, leading to significant gains or losses.
Futures Trading Risks: Investing in futures contracts involves leverage, which can amplify both gains and losses.The value of futures contracts can also be affected by factors such as interest rates, inflation, and regulatory changes.
Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still evolving, and changes in regulations could negatively impact the value of Ethereum ETFs.
Management Fees: Actively managed ETFs, like the proposed ARKZ and ARKY, typically have higher management fees compared to passively managed ETFs.These fees can eat into returns over time.
Tracking Error: ETFs may not perfectly track the performance of the underlying asset due to factors such as management fees, transaction costs, and contract rolling.

Before investing in Ethereum futures ETFs, investors should carefully consider their risk tolerance, investment objectives, and financial situation.It's also essential to conduct thorough research and consult with a financial advisor to determine if these ETFs are suitable for their portfolio.

The Role of ARK Invest and 21Shares

The partnership between ARK Invest and 21Shares brings together two firms with distinct expertise in the investment management and crypto industries.ARK Invest is known for its disruptive innovation-focused investment strategies, while 21Shares is a leading issuer of crypto ETPs, with a track record of launching successful crypto investment products in Europe.

The combined expertise of these two firms could provide a significant advantage in the development and management of Ethereum futures ETFs.ARK Invest's research capabilities and investment acumen, coupled with 21Shares' experience in structuring and distributing crypto ETPs, could lead to innovative and well-designed investment products that meet the needs of a growing investor base.

What Happens Next?The Approval Process and Timeline

The applications for ARKZ and ARKY are now under review by the SEC.The SEC will carefully examine the proposals, considering factors such as market stability, investor protection, and regulatory compliance.The approval process can take several months, and there is no guarantee that the SEC will ultimately approve the applications.

If the SEC approves the applications, ARKZ and ARKY could begin trading on exchanges shortly thereafter.This would mark a significant milestone for the crypto industry, opening up new opportunities for investors to gain exposure to Ethereum through a regulated and accessible investment vehicle.

Frequently Asked Questions (FAQ) about Ethereum Futures ETFs

What is an Ethereum Futures ETF?

An Ethereum Futures ETF is an exchange-traded fund that invests primarily in Ethereum futures contracts.This allows investors to gain exposure to the price movements of Ethereum without directly owning the cryptocurrency.

How do Ethereum Futures ETFs work?

These ETFs track the price of Ethereum by purchasing futures contracts, which are agreements to buy or sell Ethereum at a predetermined price on a future date.The ETF managers actively manage the contracts, rolling them over as they approach expiration.

What are the benefits of investing in an Ethereum Futures ETF?

Benefits include easier access to Ethereum for traditional investors, diversification within a portfolio, potentially higher liquidity compared to directly owning Ethereum, and transparency in holdings.

What are the risks of investing in an Ethereum Futures ETF?

Risks include volatility in the cryptocurrency market, risks associated with futures trading (including leverage), regulatory uncertainty, management fees, and potential tracking error.

Are Ethereum Futures ETFs suitable for all investors?

No.These ETFs are generally more suitable for investors with a higher risk tolerance who understand the complexities of futures trading and the cryptocurrency market.It's essential to conduct thorough research and consult with a financial advisor before investing.

Where can I buy Ethereum Futures ETFs?

If approved, these ETFs will be available for purchase on major stock exchanges through a brokerage account, just like any other ETF.

Conclusion: The Future of Ethereum Investment is Here

The application by ARK Invest and 21Shares to launch Ethereum futures ETFs represents a significant step forward for the cryptocurrency industry.If approved, these ETFs would provide a regulated, accessible, and potentially tax-efficient way for investors to gain exposure to the growing Ethereum ecosystem.While risks remain, the potential benefits of these ETFs are compelling, and their introduction could mark a turning point in the adoption of cryptocurrencies by mainstream investors.

Key Takeaways:

ARK Invest and 21Shares have filed for two Ethereum futures ETFs: ARKZ and ARKY.
ARKZ aims for 100% exposure to Ether futures, while ARKY offers a Bitcoin-Ethereum hybrid strategy.
The SEC's potential approval of Ethereum ETFs could open doors for broader institutional and retail investment.
Investors should carefully consider the risks and benefits of futures-based ETFs before investing.

The future of Ethereum investment is rapidly evolving, and these developments highlight the growing maturity of the cryptocurrency market.As the regulatory landscape continues to unfold, the availability of regulated investment vehicles like Ethereum ETFs will likely play a crucial role in shaping the future of digital asset adoption.If you're interested in learning more about investing in Ethereum or other cryptocurrencies, consider consulting with a qualified financial advisor to determine the best approach for your individual circumstances.