Lack confidence in Bitcoin spot ETF approval? ARK Invest launches three more Bitcoin-related ETFs
Ark Investment and 21Shares have submitted their Bitcoin spot ETF application for the third time this year. Although the review of the ETF was delayed last week, Ark has submitted three more Bitcoin-related ETFs to the SEC, showing its ambition to enter the crypto market on a large scale. However, does this indicate that Ark is somewhat concerned about the approval of the Bitcoin spot ETF?
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ARK Proposes Three New Bitcoin-Related ETFs
Ark Investment and 21Shares submitted three new ETFs to the SEC on 8/11, with investment management company Empowered Funds serving as the investment advisor. Ark Investment and 21Shares act as sub-advisors for these ETFs, which are:
ARK 21Shares Bitcoin Active Futures ETF ARKA: Under normal circumstances, this fund will invest over 25% of its total assets in Bitcoin futures, with the rest invested in short-term cash instruments such as U.S. Treasuries, money market instruments, and repurchase agreements.
ARK 21Shares Bitcoin Active On-Chain Strategy ETF ARKC: This fund uses a specialized trend indicator model to assess market trends. Under normal circumstances, over 25% of its total assets will be invested in ARKA, with the remainder in the aforementioned short-term cash instruments.
ARK 21Shares Digital Assets and Blockchain Strategy ETF ARKD: Under normal circumstances, over 80% of this fund's total assets will be invested in blockchain, digital assets, and FinTech-related companies, as well as ARKA, with the rest similarly invested in the aforementioned short-term cash instruments.
Looking at the composition of the ETFs, ARKC has a certain proportion composed of ARKA, with a higher percentage of short-term cash instruments, indicating lower volatility compared to ARKA. ARKD has the most diversified composition, with the lowest percentage of short-term cash instruments, making it relatively unstable compared to the other two funds.
Does Ark Lack Confidence in Bitcoin Spot ETF Approval?
Nate Geraci, CEO of investment advisory firm The ETF Store, shared his insights on Ark's latest ETF applications.
Considering the saturation in this area, Geraci believes that Ark may lack confidence in the approval of a Bitcoin spot ETF.
If a Bitcoin spot ETF is approved, these newly applied Bitcoin ETFs will face even tougher competition. So why did Ark choose to apply for them at this time, knowing this challenge?
