Ark Invest Partners With 21Shares to Launch Five New ETFs

• Cathie Wood’s Ark Invest collaborates with 21Shares for the launch of five new ETFs focused on digital assets.
• Ark emphasizes that the new products will not provide direct exposure to cryptocurrencies.
• Analysts foresee a 90% chance of spot Bitcoin ETF approval before January 10, 2024.

Cathie Wood’s Ark Invest is partnering with 21Shares to launch five new exchange-traded funds (ETFs) focused on digital assets. However, Ark stressed that the new products will not offer direct cryptocurrency exposure, according to Chinese reporter Colin Wu.

In a statement, 21Shares said the suite of ETFs aims to deliver long-term growth through strategic investments in Bitcoin and Ethereum futures contracts, as well as the application of blockchain technologies. 

The launch comes as anticipation builds around a potential spot for Bitcoin ETF approval in the U.S., which would open the asset class to mainstream investors. However, Ark Invest clarified that its new products will not invest directly in cryptocurrencies like Bitcoin and Ether.

“Neither the funds nor the underlying ETF invest directly in Bitcoin or other digital assets or maintain direct exposure to spot Bitcoin,” the company emphasized. Furthermore, Ark Invest stated that investors who seek direct exposure to Bitcoin’s price should consider an investment other than the funds.The launch came right before a window for the SEC to potentially approve spot Bitcoin ETFs.

According to James Seyffart, a research analyst at Bloomberg Research Department, the SEC could greenlight all 12 pending spot Bitcoin ETF applications, including Grayscale’s GBTC conversion. Seyffart anticipated a 90% chance of approval before January 10 of next year.