Asset management firm Empowered Funds, operating as a subsidiary of Alpha Architech under the EA Advisors brand, has filed an application to list three Bitcoin Futures Exchange Traded Fund (ETF) products. Per a report from the Financial Times, this ETF is unique in that it will closely draw on strategies from related products from Ark Invest and 21Shares.
While Empowered Funds will serve as the primary adviser for the funds, 21Shares and Ark Invest will take up the role of sub-adviser and sub-subadviser, respectively. As detailed in the fund's prospectus, the core product dubbed the Ark 21Shares Active On-Chain Bitcoin Strategy ETF will inject as much as 25% of the capital base into digital assets as well as blockchain strategy ETF trading on the Chicago Mercantile Exchange.
ETFs have always been tipped as a viable option to onboard wealthy institutional investors into the broader crypto ecosystem, riding on the regulatory oversight guiding their administration. The product types also offer institutions more clarity, as it bears a deep resemblance to related products in the broader financial ecosystem.
The proposed Empowered Funds Bitcoin futures ETF will exhibit different strategies depending on market conditions at a point in time. When the market is bullish, the fund can expend as much as 100% of its capital base on underlying assets, while a bearish setting will see 75% of funds injected into U.S. Treasury Securities.
When spot Bitcoin ETF?
Thus far, there has been a number of Bitcoin and Ethereum futures ETFs that have made their way to the market, with more of the likes of Bitwise currently awaiting confirmation from the United States Securities and Exchange Commission (SEC).
While these products are proof of growth in the industry, what investors want is a full-blown Bitcoin spot ETF, but the SEC said its decision on the application from major industry giants like BlackRock will not be coming until next year.
Despite the potentially long wait, stakeholders remain optimistic that such a product may eventually be approved for listing in the coming months.