ARK and 21Shares to Roll Out Crypto ETF Suite

Cathie Wood’s ARK Invest is teaming up with crypto-focused firm 21Shares to launch a group of actively managed digital asset ETFs, tapping into investor demand for crypto products as bitcoin reaches its highest price since spring 2022. 

The five funds, which include active ether and bitcoin futures ETFs, will launch Tues., Nov. 14 and listed on the Chicago Board Options Exchange. Some of the products incorporate digital asset futures contracts with stocks of companies involved in the cryptocurrency industry.  

The launch comes as bitcoin’s price has rallied amid reports that the spot bitcoin ETF approval process is moving forward towards potential approval. ARK and 21Shares are in the running to launch a spot bitcoin ETF. Bitcoin reached $36,300 as of Thursday afternoon.

While an array of futures based digital asset ETFs occupy the market—the largest being the ProShares Bitcoin Strategy ETF (BITO)—these will be the first to use active management strategies. Ophelia Snyder, President and co-founder of 21Shares, said in an interview the complex strategies were “driven by quant research by our firms,” and that she sees a place for spot and futures exposure in many crypto investor portfolios.  

“The products in the suite include relatively simple exposures as well as more complex strategies, which are very unique,” said Snyder. “They’re a combination of multi-asset strategies and a bitcoin-versus-cash strategy,” she added.  

Crypto, Spot Bitcoin ETF Race 

Despite signs the market is anticipating a spot bitcoin ETF (such as the GBTC discount narrowing and the price of bitcoin rising), investor excitement about them does not guarantee futures-based products will pique the same interest.  

When ether futures ETFs launched last month, they received lackluster investor inflows despite their novelty on the market. The ProShares Ether Strategy ETF (EETH), currently has pulled in $7.72 million, according to etf.com data. The combined six ETFs that started trading on Oct. 2 garnered only $1.92 million on their first day of trading. 

Snyder argued that the timing of these new launches is optimal for capturing investor interest. “I also think it's a really good time for these products,” she said. “We're entering a different phase in the crypto markets over the last few months, and that's particularly exciting.” 

Contact Lucy Brewster at [email protected].