According to an FT report, Empowered Funds has announced its ambitious plan to launch not one but three Bitcoin futures ETFs. But what makes this move even more appealing is the association with two of the most respected names in the spot Bitcoin ETF sector: Ark Invest and 21Shares.
Empowered Funds Will Become Adviser
Empowered Funds, a renowned player in the financial market, has aligned with Ark Invest and 21Shares, two brands synonymous with trust, innovation, and performance. Empowered Funds is set to introduce three Bitcoin futures ETFs, proudly bearing the names of Ark Invest and 21Shares.
21Shares will function as the funds’ subadviser, bringing their expertise in managing assets and ensuring the ETFs are aligned with market trends. On the other hand, Ark Invest, with its reputation for robust investment strategies, will serve as the sub-subadviser, providing an additional layer of strategic oversight.
Behind this strategic partnership is Empowered, a subsidiary of Alpha Architect operating under the name EA Advisers. They will become the funds’ primary adviser, expanding the opportunities for investments and ensuring that the ETFs not only meet but exceed investor expectations.
This move is seen by many as a masterstroke. By leveraging the brand power of Ark Invest and 21Shares, Empowered is positioning these ETFs to be among the most sought-after financial products in the crypto space. Empowered Funds’ recent filing suggests their ambition to augment their crypto fund offerings, all the while keeping an eye on launching a spot Bitcoin ETF.
The inaugural ETF, named Ark 21Shares Active Bitcoin Futures ETF, will majorly invest in Bitcoin futures from the Chicago Mercantile Exchange and act as the foundation for the subsequent two ETFs. The next in line, Ark 21Shares Active On-Chain Bitcoin Strategy ETF, will bring a minimum of 25% of its assets to the Digital Asset and Blockchain Strategy ETF, paving its investment approach in line with market dynamics.Â
In a few phases, it can channel all its investments into the foundational ETF, but during pessimistic times, it can divert up to 75% into US Treasury bonds and monetary market tools.
Lastly, the Ark 21Shares Digital Asset and Blockchain Strategy ETF will dive into the primary ETF while also offering a window into digital assets and firms at the forefront of blockchain and fintech. This ETF permits an allocation of up to 80% to the Bitcoin futures ETF or alternative assets, with the flexibility to invest a maximum of 20% in liquid assets or their equivalents.Â
SEC’s Decision On Bitcoin ETF Seems Slim
The pricing details for these ETFs remain under wraps. 21Shares’ co-founder and president, Ophelia Snyder, will take on the role of portfolio manager for these funds. Both Ark Invest and 21Shares appear to be broadening their Bitcoin ETF spectrum, possibly aiming to introduce their distinct futures ETFs to integrate into their existing ETF strategies.Â
Numerous investment firms are on edge for the SEC’s verdict on Bitcoin ETF submissions. This topic has become hot in the sector, with industry analysts keenly watching the SEC’s rulings to influence Bitcoin’s value. BlackRock, the globe’s premier asset manager, is among those in anticipation.
Even though BlackRock boasts a track record of successfully rolling out ETFs and is often viewed as the leader for approval, the SEC’s final say remains elusive. ARK Invest’s CEO, Cathie Wood, also in line for the SEC’s decision on their Bitcoin ETF proposal, opines that the SEC might greenlight several ETF submissions in one go.
Yet, the nod for ETFs associated with Ethereum could be on the horizon even sooner. A report from Aug. 17, referencing insiders in the know, suggested that the SEC is on the brink of approving the Ethereum futures ETFs.
While the SEC remains tight-lipped, these insiders convey that the agency is “unlikely to obstruct these products.” There’s also a whisper that by October, the SEC might give multiple companies the go-ahead for their launch.
