Home DeFi & NFT How to Invest in Digital Assets with Ark Invest and 21Shares

How to Invest in Digital Assets with Ark Invest and 21Shares

ETF

Digital assets, such as bitcoin and ether, have become increasingly popular among investors who seek to diversify their portfolio and benefit from the potential of blockchain technology. However, investing in digital assets can be challenging due to regulatory uncertainty, volatility, security risks, and limited access. That’s why Ark Invest, a leading investment firm that focuses on disruptive innovation, has partnered with 21Shares, a crypto asset manager, to launch a new suite of exchange-traded funds (ETFs) that will provide exposure to digital assets without the need to buy or store them directly.

What are the new ETFs?

The new suite of ETFs from Ark Invest and 21Shares will consist of five products that will begin trading on the Chicago Board Options Exchange (Cboe) next week. The products are:

– Ark 21Shares Bitcoin Futures ETF (ARKB): This fund will invest in bitcoin futures contracts traded on the CME Group, the largest regulated bitcoin futures market in the world. The fund will aim to track the performance of bitcoin, minus fees and expenses.
– Ark 21Shares Ethereum Futures ETF (ARKE): This fund will invest in ether futures contracts traded on the CME Group, the second-largest regulated ether futures market in the world. The fund will aim to track the performance of ether, minus fees and expenses.
– Ark 21Shares Digital Assets ETF (ARKD): This fund will invest in a mix of bitcoin and ether futures contracts, as well as public equities of companies engaged in the blockchain industry. The fund will aim to capture the growth potential of digital assets and blockchain technologies across various sectors and regions.
– Ark 21Shares Blockchain Innovation ETF (ARKI): This fund will invest exclusively in public equities of companies engaged in the blockchain industry. The fund will seek to identify companies that are developing or applying blockchain technologies to improve efficiency, security, transparency, or innovation in various industries.
– Ark 21Shares Crypto Income ETF (ARKC): This fund will invest in public equities of companies that generate income from crypto-related activities, such as mining, staking, lending, or providing services. The fund will seek to provide investors with a steady stream of income from the crypto economy.

How do the ETFs work?

The ETFs from Ark Invest and 21Shares will leverage onchain signals and crypto-native experience to deliver long-term capital appreciation through strategic investments in bitcoin and ether futures contracts, and the application of blockchain technologies. The funds will use a passive investment strategy that will track an index or a basket of securities. The funds will not invest directly in bitcoin or other digital assets or maintain direct exposure to spot bitcoin. Investors seeking direct exposure to the price of bitcoin should consider an investment other than the funds.

What are the benefits of investing in the ETFs?

The ETFs from Ark Invest and 21Shares will offer investors a robust set of options for introducing exposure to digital assets into their portfolio. Some of the benefits are:

– Access: The ETFs will be listed on a regulated exchange that is accessible to most investors. Investors will not need to open a separate account or wallet to buy or sell the ETFs.
– Liquidity: The ETFs will have high trading volume and low bid-ask spreads, which means investors can easily enter or exit their positions at any time during market hours.
– Diversification: The ETFs will provide exposure to different aspects of the digital asset ecosystem, such as price movements, innovation, and income generation. Investors can choose the product that best suits their risk appetite and investment goals.
– Cost-efficiency: The ETFs will have low management fees and expenses compared to other investment vehicles that offer exposure to digital assets. Investors will also save on transaction costs, custody fees, and taxes that may apply when buying or selling digital assets directly.
– Transparency: The ETFs will disclose their holdings and performance on a daily basis. Investors can monitor their portfolio and make informed decisions based on reliable data.

How to invest in the ETFs?

Investing in the ETFs from Ark Invest and 21Shares is similar to investing in any other ETF. Investors will need a brokerage account that allows them to trade on the Cboe. They can then buy or sell shares of the ETFs through their broker at the market price. The minimum investment amount is one share, which may vary depending on the product and market conditions.

Conclusion

Digital assets are an emerging asset class that offer significant opportunities for investors who want to diversify their portfolio and tap into the potential of blockchain technology. However, investing in digital assets can be complex and risky due to various factors. That’s why Ark Invest and 21Shares have launched a new suite of ETFs that will provide exposure to digital assets through futures contracts and blockchain technologies. The ETFs will offer access, liquidity, diversification, cost-efficiency, and transparency to investors who want to invest in digital assets without the hassle of buying or storing them directly. If you are interested in investing in digital assets with Ark Invest and 21Shares, you can visit their websites for more information and start trading next week.

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MikeT

Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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