Empowered Funds to launch three bitcoin futures ETFs
Empowered Funds has recently unveiled its launch of three innovative Bitcoin futures ETFs. In a strategic move to excel in the cryptocurrency investment landscape, the company has joined forces with established market players — Ark Invest and 21Shares.
The collaboration is set to be synergistic. 21Shares, bringing in its wealth of experience, will take on the role of a sub-consultant in ensuring that the ETFs remain aligned with the dynamic trends of the crypto market. Their guidance will be pivotal in managing and adapting to market shifts.
On the other hand, Ark Invest will serve as a sub-subadviser, offering a strategic oversight of the venture.
Ark 21Shares Active On-Chain Bitcoin Strategy ETF will allocate at least 25% of its assets towards new ETFs. However, under favourable market conditions, this allocation could potentially scale up to 100%, showcasing the flexibility and adaptability of the fund’s investment strategy.
Ark 21Shares Active Bitcoin Futures ETF will primarily channel its funds into Bitcoin futures traded on the Chicago Mercantile Exchange.
Amidst a backdrop of decreasing market activity, the allocation of investments in Bitcoin futures could be capped at 80%. The remaining portion of the funds is poised to be directed towards safer havens such as cash reserves, US Treasury securities, and real estate investment funds.
The distinctive hallmark of the Ark 21Shares ETF investment strategy lies in its remarkable flexibility. The investment team stands ready to promptly respond to shifting trends within the crypto market. They will dynamically adjust the extent of their investments in Bitcoin futures in alignment with these evolving trends. Importantly, this approach grants the team unfettered discretion when determining the distribution of assets.
Renowned experts have hailed this initiative as a notable advancement in the evolution of crypto ETFs. Roxanna Islam, associate director of research at VettaFi, highlighted that Ark is effectively leveraging its existing resources while concurrently broadening its spectrum of cryptocurrency funds, while keeping its eye on the goal of a spot bitcoin ETF.