Ark Invest’s Third Amendment
Bloomberg’s ETF expert, Eric Balchunas, has revealed that Cathie Wood’s Ark Invest has made its third amendment to the Bitcoin ETF filing, bringing significant improvements that have piqued the financial community’s interest.
The notable aspect of the amendment was the disclosure of a fee for the proposed ETF. ARKB would charge 80 basis points (bps), marking Ark Invest as the first issuer to disclose such a fee, aligning with the demand for clear and explicit fee structures in the ETF space.
Balchunas also highlighted several updates, focusing on new risk disclosures likely to address specific concerns raised by the SEC’s Division of Corporation Finance (Corp Fin). The filing maintains a commitment to in-kind creations and redemptions, albeit in a hybrid model, to minimize tax implications and address potential spread issues.
SEC Delays and Impact on Spot Bitcoin ETF Approvals
Bloomberg’s James Seyffart shared insights into the SEC’s decision to delay approvals for spot Bitcoin ETFs, citing comments by the SEC’s Trading and Markets division. The delays were considered a positive sign, indicating thorough consideration by the regulatory body.
The SEC’s request for cash creates could potentially impact broker-dealers, but Balchunas expressed optimism about the overall efficiency of this approach. The delay in decisions likely pushes the timeline for a final decision further into the future.
Presented by Bloomberg analysts, the odds of a spot Bitcoin ETF approval remain at 90%.
Hot Take
Cathie Wood’s Ark Invest has made significant changes to their Bitcoin ETF filing, including a disclosed fee and updates addressing new risk disclosures. This, along with the SEC’s delay in approvals, continues to impact the growing demand for spot Bitcoin ETFs.
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