EA Series Trust - ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ)
EA Series Trust - ARK 21Shares Active Ethereum Futures Strategy ETF operates in the Asset Management industry of the Financial Services sector, headquartered in Newtown Square, PA, US. The stock last traded at $44.46, down 0.13% on the session, giving a market capitalisation of $9.7M. Its beta of 4.89 implies it has historically moved more than the broad market.
The ARKZ fund primarily holds standardized, cash-settled Ether futures contracts which are traded on the Chicago Mercantile Exchange (CME). A significant portion, targeted at over 25% of its total assets, is allocated to these futures through a subsidiary established in the Cayman Islands. The fund actively manages its futures positions using a "rolling strategy". This approach seeks to maximize "roll yield" by selecting contracts that offer the most advantageous combination of factors, such as transaction costs, market liquidity, and other pertinent considerations. These chosen contracts typically have monthly or quarterly expiration periods. This often involves investing in front-month (nearest-term) Ether futures and subsequently transitioning these positions to the next available contract when it is deemed most beneficial for generating optimal roll yield. Remaining capital not deployed in futures is invested in a diversified portfolio of short-term cash instruments. These holdings, which include U.S. Treasury securities and money market instruments, serve to maintain liquidity and provide collateral for the Ether Futures investments. Furthermore, the fund has the flexibility to employ leverage through the use of reverse repurchase agreements.
EA Series Trust - ARK 21Shares Active Ethereum Futures Strategy ETF is most often compared with the following Financial Services names: