ARK 21Shares May Outpace BlackRock in Bitcoin Spot ETF Race

• The Securities and Exchange Commission (SEC) is expected to make a decision on the first Bitcoin spot ETF application from ARK 21Shares by August 13, 2023.
• ARK 21Shares has made an amendment to their previous application, adding a surveillance sharing agreement, a strategy believed to be instrumental in BlackRock’s ETF approval.
• If the SEC approves BlackRock’s application due to the surveillance sharing agreement, it will be compelled to approve ARK 21Shares’ application, which is due for decision six days earlier.

The SEC is set to decide on ARK 21Shares’ Bitcoin spot ETF application, the first of its kind, by August 2023. ARK 21Shares has amended its application to include a surveillance sharing agreement, a move believed to boost BlackRock’s ETF approval chances. If the SEC approves BlackRock’s application for this reason, it will have to approve ARK 21Shares’ application, which is due six days earlier.

Bitcoin Spot ETF Decision Looms

ARK 21Shares, a leading player in the cryptocurrency space, has submitted the first Bitcoin spot ETF application to the Securities and Exchange Commission (SEC). The decision on this application, which could significantly impact the cryptocurrency market, is expected by August 13, 2023.

Strategic Amendment to Application

In a strategic move, ARK 21Shares has made an amendment to their previous application. This amendment includes a surveillance sharing agreement, a strategy that BlackRock, another major player in the cryptocurrency market, is believed to be relying on for their ETF approval. This amendment does not extend the application’s timeline but adds to the application file.

Implications of the Amendment

The inclusion of the surveillance sharing agreement in their application suggests that ARK 21Shares is seeking to gain an edge in the race for ETF approval. If the SEC approves BlackRock’s application due to the surveillance sharing agreement, it will be compelled to approve ARK 21Shares’ application, which is due for decision six days earlier.

Conclusion

Following this amendment, there are two possible outcomes. First, if the SEC prioritizes BlackRock’s application, it will need a concrete reason to do so. The amendment by ARK 21Shares eliminates this possibility, forcing the SEC to either delay or reject ARK 21Shares’ application if it insists on prioritizing BlackRock. Second, if the SEC approves the spot ETF and cites the surveillance sharing agreement as the primary reason, ARK 21Shares will have gained a six-day lead in the race.

Being the first to offer such a new investment instrument can result in a significant share of the market, as seen with the futures ETF (BITO).