SEC Emphasizes Cash Creates Model for Bitcoin ETF
ARK Invest and 21Shares have submitted an S-1 amendment to the SEC for their spot Bitcoin ETF. The firms have agreed to the SEC’s “cash create” redemption mechanism for the proposed product.
SEC Advises Cash Creates Model for Bitcoin ETF
BlackRock met with the SEC and was advised to adopt the cash create model for their spot Bitcoin ETF. Fidelity also highlighted the in-kind model as their redemption mechanism of choice. ARK 21Shares, however, has chosen cash creation, following the SEC’s suggestion. This decision could be a strategy to secure a position in the “front row” of applicants whose ETF filings will be considered first by the SEC.
Ark Invest and the Approval Deadline
The deadline for the SEC to make a decision on ARK 21Shares’ Bitcoin ETF filing is approaching, with a January 10, 2024 approval window. ARK 21Shares remains confident about receiving a positive response from the regulator, despite industry experts suggesting that the SEC may not prioritize any specific applicant.
Hot Take: ARK Invest and 21Shares Follow SEC’s Advice on Cash Creation for Bitcoin ETF
ARK Invest and 21Shares have submitted an S-1 amendment to the SEC for their spot Bitcoin ETF, choosing to adopt the agency’s recommended cash create redemption mechanism. This move aligns with recent advice given by the SEC to other potential candidates, such as BlackRock and Fidelity, who have also filed for a spot BTC ETF. As the approval deadline approaches, ARK 21Shares remains confident in its chances of receiving a positive response from the regulator.
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