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As a range of firms chase a spot bitcoin ETF, Ark Invest expects to differentiate by ultimately bringing more exposures than rivals to market, the company\u2019s chief operating officer said.\u00a0<\/p>\n
The Securities and Exchange Commission approving a spot bitcoin ETF would be \u201cjust the beginning\u201d for the US crypto ETF space \u2014 spurring a \u201cmetamorphosis\u201d for digital asset access for TradFi users, Ark Invest<\/a> Chief Operating Officer Tom Staudt told Blockworks in an interview.<\/p>\n \u201cWe believe firmly that we will have the most encompassing, most complete, most diverse and deepest crypto suite of products in the ETF wrapper in the United States,\u201d he added. \u201cWe want to be the crypto solution for the ETF market.\u201d<\/p>\n Like a handful of other fund groups, Ark Invest \u2014 in tandem with Europe-based crypto ETP issuer 21Shares \u2014 has a proposed spot bitcoin ETF<\/a> in front of the SEC. The Cathie Wood-led firm is set to receive a ruling on that product<\/a> from the securities regulator by Jan. 10.<\/p>\n The firms have also, similarly to competitors, filed for an ETF that would invest in ether futures contracts<\/a> \u2014 a type of fund expected to launch next month.<\/a>\u00a0<\/p>\n But Ark Invest and 21Shares have planned other crypto offerings, such as a fund that would invest in both bitcoin futures and ether futures contracts. Another would blend bitcoin futures exposure with crypto- and blockchain-related equities.\u00a0<\/p>\n Read more: <\/strong>Amid spot BTC ETF effort, Ark and 21Shares seek to launch other crypto funds<\/a><\/p>\n The two companies then made headlines earlier this month by filing for a spot ether ETF<\/a>.\u00a0<\/p>\n \u201cRight now we have seven filings; we don\u2019t think that\u2019s where this will end,\u201d Staudt said. \u201cWe think that the regulators and the market are both going to approve and demand more solutions for deeper exposures and more specific exposures.<\/p>\n \u201cObviously the obstacles and the big opportunities are still ahead of us,\u201d he added.<\/p>\n Though Ark intends to ultimately have the most comprehensive crypto suite, it is not the only one chasing multiple crypto products.\u00a0<\/p>\n ProShares was the first to launch a bitcoin futures ETF<\/a> in October 2021 and also filed for various ether futures-related strategies last month. VanEck, Valkyrie and Bitwise also have live bitcoin futures offerings and intend to broaden their ETF lineups with exposure to ether futures, spot bitcoin and, in VanEck\u2019s case, a spot ether product.<\/p>\n It\u2019s not a stretch for Ark Invest to believe they can become a US leader in the segment given 21Shares is the world\u2019s largest provider of ETPs, according to Nate Geraci, president of The ETF Store. The challenge, he added, will be navigating the \u201cabsolutely brutal competitive environment,\u201d particularly when it comes to fees.\u00a0<\/p>\n \u201cArk isn\u2019t exactly known as a low-cost leader with their existing product lineup, so the question is how committed will they be to fighting for crypto ETF assets based on fees?\u201d Geraci told Blockworks.<\/p>\n The company has a competitive advantage when it comes to marketing, however, he argued \u2014 an asset industry watchers have said will be crucial given the crowd of fund issuers seeking to launch similar funds.<\/p>\n \u201cNobody in asset management markets their firm and products the way Cathie Wood does,\u201d Geraci said. \u201cThat could be a game changer if their crypto ETFs are competitively priced.\u201d<\/p>\n Ark\u2019s focus on the pending US crypto ETFs comes as the firm\u2019s other main priority is bringing its existing, non-crypto innovation strategies to Europe. Last week, the company acquired thematic fund specialist Rize ETF Limited, giving the firm an entry point into that market.\u00a0<\/p>\n Though Europe already has its share of crypto ETPs trading, Ark could seek to bring some differentiated crypto-related offerings to Europe \u2014 and other global markets \u2014 down the line, Staudt said.<\/p>\n But the executive noted that right now, getting its crypto ETFs approved in the US is more pressing.<\/p>\n \u201cWe\u2019re really intending to not take our eye off the ball at what we think is a critical juncture,\u201d Staudt added. \u201cIt\u2019s pretty fair to say the US crypto ETF market is on the precipice of the inflection point.\u201d<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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