Empowered Funds is working together with Ark Invest and 21Shares to gain approval from the SEC for special Bitcoin futures ETFs.
Empowered Funds, which is a part of Alpha Architect known as EA Advisers, has applied to create three new ETFs related to Bitcoin futures. These ETFs will be connected with 21Shares and Ark Invest.
However, even though they will have the names of these companies, their management roles will be a bit different. For these funds, 21Shares will be the subadviser, and Ark Invest will take on the role of the sub-subadviser. This plan has been reported by the Financial Times.
Empowered Funds’ Bitcoin Futures ETF Strategies
The primary ETF among these three is the Ark 21Shares Active Bitcoin Futures ETF. This ETF will focus mainly on trading Bitcoin futures on the Chicago Mercantile Exchange. It will also serve as the foundation for the other two related funds.
The second one, called the Ark 21Shares Active On-Chain Bitcoin Strategy ETF, plans to allocate at least 25% of its funds to the Digital Asset and Blockchain Strategy ETF. This fund will use its special model to decide how to distribute its assets based on whether the Bitcoin market is doing well (bullish) or not (bearish). During good times, it can put all its funds into the main ETF.
But when the market isn’t doing well, it might put up to 75% of its money into safe things like US Treasury securities, money market tools, and repurchase agreements. The ETF will adjust how much it invests in Bitcoin futures based on how it sees the market trend, but the people managing the investment will have control over this.
The third ETF, known as the Ark 21Shares Digital Asset and Blockchain Strategy ETF, is interested in the foundational ETF and also looking into investments connected to digital stuff and companies in areas like blockchain, technology, and fintech. This one can put as much as 80% of its money into the Bitcoin futures ETF or other types of assets, and up to 20% might go into things like cash equivalents (Treasuries) and real estate investment trusts.
Details from Financial Times about the ETFs
The Financial Times reported that while the exact fees for these ETFs haven’t been disclosed, the filing has shown that Ophelia Snyder, who is the co-founder and president of 21Shares, will be in charge of managing the investments for these funds.
Reasons Behind the ETFs
Experts believe that Ark and 21Shares are working to make their variety of Bitcoin ETFs more diverse. They might introduce futures ETFs to make their overall ETF strategies better. Since the Securities and Exchange Commission (SEC) has recently delayed approving ETFs linked to the actual Bitcoin value, these companies are looking for other ways to expand their crypto funds.
Leveraging Resources for Crypto Funds
Even though the approval for ETFs based on the current Bitcoin value is facing challenges, it’s clear that Ark is using what it already has to increase the range of its crypto funds. The main company behind Empowered Funds, called Alpha Architect, has 15 ETFs together, and these are worth about $1.9 billion as of the end of July. Investors have put in a significant $717 million into these funds in the year leading up to that date. This shows that there’s a growing interest in investment products related to cryptocurrencies.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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