21Shares, Ark Invest Launch Digital Asset ETFs

Despite no direct digital asset investments, 21Shares’ crypto expertise and strategic approach are likely to draw investors.

21Shares and Cathie Wood’s Ark Invest are preparing to launch a new suite of exchange-traded funds (ETFs) that, according to the firm, will provide investors with “a comprehensive set of options for introducing exposure to digital assets into a portfolio.”

According to 21Shares, the suite “aims to deliver long-term capital appreciation through strategic investments in Bitcoin and Ethereum futures contracts and the application of blockchain technologies by leveraging on-chain signals and our crypto-native experience.”

Prospectuses indicate that the ETFs will be listed on the Chicago Board Options Exchange, or Cboe. Next week, a cumulative sum of five products will enter the trading environment.

Anticipated Investor Interest in 21Shares’ ETF Offerings

According to the website of 21Shares, one product will invest in a portfolio that includes “public equities of corporations engaged in the blockchain industry,” in addition to Bitcoin and ether futures contracts.

Ark emphasized that the funds will not permit direct investments in digital assets now. Ark stated, “Neither the funds nor the underlying ETF maintain direct exposure to spot Bitcoin or invest directly in bitcoin or other digital assets.”

“Investors interested in gaining direct exposure to the bitcoin price ought to contemplate alternative investment options.”

Traditional finance and the cryptocurrency industry are anticipating a decision on the spot bitcoin ETFs that Ark is launching.

Prominent investors, including Fidelity, Grayscale, and BlackRock, are pursuing these ETFs. Bitcoin has appreciated due to the anticipation that a spot Bitcoin ETF will be authorized shortly.

Although funds that engage in Bitcoin futures have been authorized by the SEC, a spot fund has yet to receive approval.