Ark Invest, led by Cathie Wood, Files Revised Bitcoin ETF Application

Ark Invest Files Second Amended Application for Bitcoin ETF

Cathie Wood’s Ark Invest has submitted a second amended application for a Bitcoin spot exchange-traded fund (ETF). The latest version, filed on October 11, includes additional risk warnings related to the Bitcoin network’s electricity consumption, source code upgrades, and industry competition. It also specifies that Coinbase will hold the ETF’s assets in segregated addresses on the Bitcoin blockchain, separate from corporate or customer assets. The amendment comes after Ark Invest resubmitted its application earlier this year, following a rejection in 2021. This update includes minor edits and details based on feedback from the Securities and Exchange Commission (SEC).

Environmental Concerns and Illicit Transactions

The new filing addresses environmental concerns and the potential impact of illicit transactions on the Bitcoin industry and the Trust’s investment. These additions aim to provide a comprehensive overview of the risks associated with investing in a Bitcoin ETF. Bloomberg’s ETF expert, Eric Balchunas, noted that the latest filing contains additional information spread throughout five extra pages. While these changes are considered minor, they signify progress towards obtaining approval for the first spot Bitcoin ETF in the industry.

Hot Take: Ark Invest Makes Strides Towards Bitcoin ETF Approval

Ark Invest’s second amended application for a Bitcoin spot ETF demonstrates their commitment to addressing regulatory concerns and ensuring investor protection. By adding risk warnings related to electricity consumption, source code upgrades, and industry competition, Ark Invest acknowledges the potential challenges associated with investing in the Bitcoin network. Furthermore, segregating assets on the blockchain through Coinbase as custodian adds an extra layer of security and transparency. These updates show that Ark Invest is actively engaging with feedback from the SEC and making solid progress towards obtaining approval for a spot Bitcoin ETF.