ARK partners with 21Shares to file application for Bitcoin Futures ETF

ARK Investment Management one of the biggest investment management firms led by Cathie Wood has shaken hands with 21Shares.
ARK Investment Management one of the biggest investment management firms led by Cathie Wood has shaken hands with 21Shares.

ARK Investment Management, one of the biggest investment management firms led by Cathie Wood, has shaken hands with 21Shares, an exclusive Exchange-Traded Products or ETPs provider. The two firms have filed for an application with the United States U.S Securities and Exchange Commission or SEC. 

The application is regarding the approval for a Bitcoin Futures exchange-traded fund, or ETF. The demand for ETF is increasing as a number of applicants wait in line for their approval, and the latest applicant is the team of ARK and 21Shares. 

The application was submitted to the regulatory authority by the Alpha Architect ETF Trust. According to the filing, the exchange-traded fund will require ARK and 21Shares to team up for different roles. 

ARK to provide marketing support

According to their partnership, ARK will be limited only to provide marketing support for the ETF. On the other hand, 21Shares has been listed as the exchange-traded fund’s sub-advisor. 

The two firms will have their respective roles to bear, and according to the filing with the SEC, if the ETF gets approval from the SEC, the ETF will be listed on Cboe BZX Exchange. The name of this ETF has been cited as ARK 21Shares Bitcoin Futures Strategy ETF, while the symbol is “ARKA.”

The race for Bitcoin futures ETF

A number of firms have tried to file for a Bitcoin ETF, with no response from the SEC. Due to the increasing demand for the Bitcoin ETF, many investors believe that SEC will approve an ETF as early as the first quarter of 2022

ARK and 21Shares have previously tried to get their Bitcoin ETF approved but, to no avail. Recently, SEC Chair Gary Gensler announced that the possibility of getting a Bitcoin Futures ETF was higher than the approval of Bitcoin ETF. 

For this reason, ARK and 21Shares decided to file for Bitcoin Futures ETF. Eric Balchunas from Bloomberg claims that the chances of approval of a Bitcoin Futures ETF in the month of October are around 75%.