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Empowered Funds has filed for the launch of three bitcoin futures ETFs that will feature the renowned Ark Invest and 21Shares brands.
While the ETFs will utilize the 21Shares and Ark brands, these companies will act as the subadviser and sub-subadviser, respectively.
Empowered, a subsidiary of Alpha Architect trading as EA Advisers, will serve as the advisor to these funds.
The Ark 21Shares Active Bitcoin Futures ETF primarily invests in bitcoin futures traded on the Chicago Mercantile Exchange.
This article was previously published by Ignites, a title owned by the FT Group.
This ETF will also serve as the underlying ETF in two other bitcoin-related ETFs.
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, as stated in its prospectus.
The on-chain ETF will utilize a proprietary trend indicator model to adjust its allocation strategy based on the bullish or bearish trend in the bitcoin market.
Under bullish conditions, the ETF may allocate 100% of its assets to the underlying ETF, as mentioned in the prospectus.
This article was previously published by Ignites, a title owned by the FT Group.
Under bearish conditions, the fund will allocate up to 75% of its assets to US Treasury securities, money market instruments, and repurchase agreements.
Based on the trend assessment by the model, the ETF’s investment team will adjust the fund’s exposure to bitcoin futures, as indicated in the filing.
The ETF’s investment team will rely on the model but will have full discretion in determining the active ETF’s allocation to bitcoin futures.
Meanwhile, the Ark 21Shares Digital Asset and Blockchain Strategy ETF will invest in the underlying ETF along with investments in digital assets, blockchain companies, technology, and fintech industries, according to its prospectus.
This ETF may allocate up to 80% of its assets to the bitcoin futures ETF or other assets and up to 20% of its assets to cash equivalents such as Treasuries and real estate investment trusts.
The fees for these ETFs have not been disclosed.
Ophelia Snyder, co-founder and president of 21Shares, will serve as the portfolio manager for the funds, as stated in the filings.
Roxanna Islam, Associate Director of Research at VettaFi, suggests that Ark and 21Shares may be diversifying their bitcoin ETF range and attempting to launch their own futures ETF for use within their other ETF strategies.
“While recent news revolves around spot bitcoin ETF filings, it may still take a long time for approval,” Islam said. “It seems that Ark is leveraging current resources and continuing to expand its current lineup of crypto funds while keeping an eye on the goal of a spot bitcoin ETF.”
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The two managers filed for a spot bitcoin ETF in April, but the Securities and Exchange Commission postponed its decision on approval last week.
Ark updated its spot bitcoin ETF filing in June, following similar filings from major managers like BlackRock, Fidelity, and Invesco.
As of July 31, Alpha Architect’s parent company, Empowered Funds, offers 15 ETFs with $1.9 billion in assets, based on data from Morningstar Direct.
Investors have invested $717 million into these funds in the year leading up to that date.
*Ignites is a news service published by FT Specialist for professionals in the asset management industry. Trials and subscriptions are available at ignites.com.
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