ARKZ Profile
The EA Series Trust - ARK 21Shares Active Ethereum Futures Strategy ETF (ticker: ARKZ) is an actively managed exchange-traded fund that invests primarily in standardized, cash-settled Ethereum futures contracts traded on the Chicago Mercantile Exchange (CME). The fund aims to allocate over 25% of its total assets to these Ethereum futures contracts through a Cayman Islands-based subsidiary. This structure facilitates efficient management of the fund's exposure to Ethereum while optimizing the strategic allocation of its resources.
The ARKZ ETF employs a rolling strategy designed to achieve optimal roll yield from its Ethereum futures contracts. This strategy involves investing in contracts that offer the best combination of cost, liquidity, and other relevant factors. Typically, these futures contracts have monthly or quarterly periods. The fund focuses on front-month Ethereum futures contracts and generally rolls over to the next nearby contracts at times determined to maximize roll yield. This approach helps in capturing potential returns from the periodic adjustments of futures contracts and enhances overall fund performance.
To ensure liquidity and manage collateral requirements for its Ethereum futures investments, the fund diversifies the remaining assets into short-term cash instruments. These instruments include U.S. Treasury securities and money market instruments, which provide stability and liquidity to the fund. Additionally, the ARKZ ETF may use leverage through reverse repurchase agreements to potentially enhance returns. This leveraging strategy involves borrowing funds to invest in additional securities, thereby amplifying the potential gains from the fund's core investments in Ethereum futures.
Overall, the ARK 21Shares Active Ethereum Futures Strategy ETF is designed to offer investors targeted exposure to Ethereum through a structured and strategic approach to futures contracts. By focusing on optimizing roll yield and managing liquidity effectively, the fund aims to capitalize on market opportunities and deliver attractive returns. The use of advanced investment strategies, including leveraging, further supports the fund’s goal of achieving superior performance in the evolving Ethereum futures market.
|
