ARK Invest/ 21Shares Submits Updated Spot Bitcoin ETF Prospectus
In a significant development, ARK Invest/ 21Shares has submitted an updated version of its spot Bitcoin Exchange-Traded Fund (ETF) prospectus in response to comments and questions from the SEC. Bloomberg’s senior ETF analyst, Eric Balchunas, shared on Twitter that the updated filing addresses the SEC’s inquiries and includes changes to the Net Asset Value (NAV) calculations. The prospectus also highlights the segregation of assets on the Bitcoin blockchain to prevent commingling with other customer assets. These amendments reflect a positive dialogue between ARK and the SEC, although it does not guarantee immediate approval.
Aligning with Regulatory Parameters
The responsiveness of ARK to the SEC’s comments demonstrates their efforts to align the Bitcoin spot ETF with regulatory requirements. Bloomberg analyst James Seyffart noted that the inclusion of details about holding Bitcoin in individual wallets indicates ongoing discussions between issuers and the SEC. Finance lawyer Scott Johnsson reviewed the changes and observed that they addressed the SEC’s comments effectively. Balchunas agreed, stating that none of the comments posed significant challenges for ARK, allowing them to make the required changes within two weeks.
Will ARK Be the First Approved?
Nate Geraci, President of the ETF Store, raised questions about which applicant would be approved first among multiple spot Bitcoin ETFs. He suggested that since ARK was first to file and amend their application in response to SEC comments, they could potentially be the first to launch. However, there is speculation that the SEC might approve all Bitcoin ETF applications simultaneously, creating a competitive environment among various issuers such as ARK Invest / 21 Shares, BlackRock, Fidelity, Invesco, and Bitwise.
Regulatory Advancements and Market Situation
Alistair Milne, Chief Investment Officer of the Altana Digital Currency Fund, highlighted the regulatory progress alongside the current market conditions. He noted that ARK’s updated filing indicates engagement with the SEC for the first time and emphasized that Bitcoin ETFs are on the horizon while Bitcoin’s price remains below $30,000.
Hot Take: Bitcoin ETF Prospects Brighten as ARK Submits Updated Filing
The submission of an updated spot Bitcoin ETF prospectus by ARK Invest/ 21Shares in response to SEC comments signals progress towards regulatory approval. By addressing the SEC’s inquiries and making necessary changes, ARK demonstrates a commitment to meeting regulatory parameters. The ongoing dialogue between issuers and the SEC is seen as a positive development for potential approval. While it remains uncertain if ARK will be the first approved, their proactive approach could position them favorably. With multiple issuers vying for approval, a collective approval of Bitcoin ETFs might create a competitive market environment. As regulatory advancements continue, the market awaits further updates from other applicants.
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