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ARK Invest and 21Shares have jointly applied for two futures exchange-traded fund (ETF) products involving ether (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) and bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>).&nbsp; 
The <a href="https://www.sec.gov/Archives/edgar/data/1592900/000182912623005634/easeries_485apos.htm#b_001" target="_blank" rel="noopener noreferrer nofollow">applications</a> lodged with the Securities and Exchange Commission (SEC) by Empowered Funds, the investment advisor for the products, on Aug. 24 detail two ETFs: 
<ul> 
 <li>the ARK 21Shares Active Ethereum Futures ETF (ARKZ)</li> 
 <li>the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY).</li> 
</ul> 
Unlike direct investment in digital assets or spot products, these ETFs will focus on cash-settled futures contracts traded on registered commodity exchanges like the Chicago Mercantile Exchange (CME). 
According to the filing, ARKZ will allocate at least 25% of its investments to ether futures products related to the ETH cryptocurrency. The remaining funds will be distributed among US Treasuries, money market instruments, and repurchase agreements. 
ARKY will follow a similar pattern, investing at least 25% in ether and bitcoin futures products, with the rest going to cash and cash equivalents, mainly US government securities. 
This development comes on the heels of reports that the SEC is&nbsp;considering approving the launch&nbsp;of Ether-Futures ETFs by October. 
Currently, six other firms are seeking approval for an Ether Futures ETF, including&nbsp;<a href="https://crypto.news/valkyrie-submits-application-for-ether-futures-etf/" target="_blank" rel="noopener noreferrer nofollow">Valkyrie Ethereum Strategy ETF</a>, Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy ETF,&nbsp;<a href="https://crypto.news/vaneck-application-ethereum-futures-etf/" target="_blank" rel="noopener noreferrer nofollow">VanEck’s Ethereum Strategy ETF</a>,&nbsp;<a href="https://crypto.news/proshares-becomes-11th-company-to-file-for-ethereum-etf-in-a-week/" target="_blank" rel="noopener noreferrer nofollow">ProShares Short Ether Strategy ETF</a>, and Grayscale Ethereum Futures ETF. 
 You might also like: <a href="https://crypto.news/sec-nears-approval-of-ether-futures-based-etf/" rel="noopener noreferrer nofollow"> SEC nears approval of ether futures-based ETF </a> 
<h2 class="wp-block-heading" id="strong-bitcoin-etfs-face-approval-challenges-strong">Bitcoin ETFs face approval challenges</h2> 
Ark Invest and 21Shares initially joined forces to launch a spot Bitcoin ETF in 2021. However, the SEC rejected their first two attempts in&nbsp;<a target="_blank" href="https://crypto.news/ark-21shares-spot-bitcoin-etf-first-application/" rel="noopener noreferrer nofollow">March 2022</a>&nbsp;and January of this year. 
The most recent Bitcoin spot ETF&nbsp;<a target="_blank" href="https://crypto.news/ark-investment-and-21shares-revive-spot-bitcoin-etf-application/" rel="noopener noreferrer nofollow">application was submitted</a>&nbsp;in April, shortly before BlackRock, a $10 trillion firm,&nbsp;<a target="_blank" href="https://crypto.news/blackrock-files-new-bitcoin-etf-application-amid-secs-concerns/" rel="noopener noreferrer nofollow">filed</a>&nbsp;its application. 
The SEC has recently found many of the Bitcoin spot ETF applications lacking, leading ARK 21Shares and other applicants to&nbsp;<a href="https://crypto.news/sec-accepts-bitcoin-etf-applications-from-blackrock-fidelity-galaxy-digital/" target="_blank" rel="noopener noreferrer nofollow">include a surveillance-sharing agreement</a>&nbsp;in their applications. 
The investment firms are now awaiting the decisions on Ark 21Shares Active Bitcoin Futures ETF (ARKA) and Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC). 
 Read more: <a href="https://crypto.news/former-sec-official-bitcoin-etf-approval-wont-happen-any-time-soon/" rel="noopener noreferrer nofollow"> Former SEC official: Bitcoin ETF approval won’t happen any time soon </a>

ARK Invest and 21Shares join forces for crypto ETFs

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