A Positive Sign for ARK Invest and 21Shares’ Bitcoin ETF Application
An amendment to the joint spot Bitcoin exchange-traded fund (ETF) application by ARK Invest and 21Shares is seen as a positive development indicating progress and potential approvals. The amended filing submitted to the United States Securities and Exchange Commission (SEC) provides additional information about the proposed ETF, including custody practices and asset valuation methods.
Addressing SEC Concerns
The changes made in response to concerns raised by the SEC are scattered throughout the five-page longer filing. Bloomberg senior ETF analyst Eric Balchunas believes that these changes demonstrate that ARK has addressed all of the SEC’s comments, putting the ball back in the regulator’s court. This is considered a good sign of solid progress towards approval.
Key Changes in the Filing
One notable change highlighted by Balchunas is that ARK acknowledged that its net asset value calculations do not align with Generally Accepted Accounting Principles (GAAP), which are used by the SEC. The filing also clarifies that the ETF’s assets held by Coinbase Custody are segregated from corporate or other customer assets.
Positive Implications for Approval
Bloomberg ETF analyst James Seyffart believes that this interaction between ARK and the SEC, particularly regarding asset segregation, indicates a positive outlook for future approval. Another addition in the filing points out that if Bitcoin is increasingly used for illegal purposes or if its environmental impact leads to restrictions on mining, it could affect the value of the ETF.
A Smooth Process with No Unnecessary Obstacles
Based on ARK’s amendments, Van Buren Capital general partner Scott Johnsson suggests that the agency does not seem to be creating unnecessary roadblocks through its disclosure review. This implies that the SEC is working collaboratively with ARK to address any concerns and move the ETF application forward.
Hot Take: Progress Made in Amended Filing for ARK Invest and 21Shares’ Bitcoin ETF
The recent amendment to the joint spot Bitcoin ETF application by ARK Invest and 21Shares, addressing concerns raised by the SEC, is a positive sign of progress. The changes made in the filing, including clarifying custody practices and asset valuation methods, indicate that ARK has responded to the SEC’s comments. Analysts believe that this interaction between ARK and the SEC, as well as the absence of unnecessary obstacles, bodes well for future approval. The collaborative approach taken by both parties demonstrates a commitment to addressing regulatory concerns and advancing the ETF application.
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