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According to Bloomberg, Ark Invest is joining the race of institutions that have applied for a cryptocurrency ETF. The ARK 21Shares fund, the ticker of ARKA, will invest in bitcoin futures, and not in the cryptocurrency itself, which may facilitate its approval, given the recent words of Gary Gensler about this.
Recall that the one who owns futures contracts does not actually own cryptocurrency, but rather has the rights to an agreement between the parties to purchase an asset in the future at a price determined in the present.
Futures markets tend to be more volatile, but have the advantage that participants do not need to protect assets, which is a financial and regulatory advantage, as the rules are clearer because every futures contract is regulated by the CFTC without any doubt.
According to the latest Ark Invest documentation, the fund invests in bitcoin futures ETFs properly regulated by the United States.
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