Cathie Wood’s Ark Investment Management is the latest Wall Street heavyweight jostling for position to get involved in an exchange-traded fund (ETF) tracking bitcoin futures — an investment vehicle US regulators may soon approve.
The high-profile investor will lend the name of her fund to a new ETF, a filing made on 13 October with the Securities and Exchange Commission (SEC) showed.
The ARK 21Shares Bitcoin Futures Strategy ETF, which will trade under the ticker ARKA, plans to invest in futures contracts for bitcoin — the leading cryptocurrency— traded on the likes of the Chicago Mercantile Exchange .
The filing was made by ETF issuer Alpha Architect, with 21Shares US listed as the sub-adviser. Alongside giving its name to the ETF, Ark will provide marketing support to 21Shares US.
Wood joins fund managers from the likes of ProShares, Invesco, and Galaxy Digital who have filed to run a Bitcoin futures ETF.
US regulators have long pushed back against an ETF for Bitcoin amid wider caution over regulation in the crypto space. But SEC chair Gary Gensler has signalled that he would be open to the idea of a crypto ETF, prompting speculation that a fund tracking Bitcoin futures as opposed to the crypto itself may be more likely to get the green light.
An ETF such as ARKA would hold futures contracts representing bets on whether the price of Bitcoin will rise or fall, similar to ETFs tracking oil and other commodities.
While trading in Bitcoin itself remains unregulated — Gensler has called the crypto market the “Wild West” — futures are traded on and regulated by the Chicago Mercantile Exchange.
From Dow Jones Newswires.