- Cathie Wood’s Ark Invest has amended its Bitcoin ETF application for the third time, bringing significant improvements and taking a step that has caught the attention of the financial community.
- Balchunas revealed that ARKB will charge an 80 basis point (bps) fee, stating that Ark Invest is the first issuer to announce this fee.
- James Seyffart included comments from the SEC’s Trading and Markets division regarding the reasons why the SEC decided to delay approvals of spot Bitcoin ETFs.
Cathie Wood’s Ark Invest updates its spot Bitcoin ETF filing for the third time: What’s the significance of this update? Analyst announced!
ARK Updates Bitcoin ETF Application Again
Cathie Wood’s Ark Invest has amended its Bitcoin ETF application for the third time, bringing significant improvements and taking a step that has caught the attention of the financial community. Bloomberg’s ETF expert Eric Balchunas shared this surprising news and described it as a positive step in the Securities and Exchange Commission (SEC) approval process.
Analysts and investors found an important point that caught their attention, which was the disclosure of a fee for the proposed ETF. Balchunas stated that ARKB will charge 80 basis points (bps), making Ark Invest the first issuer to disclose such a fee. This move is a significant development in adding a layer of transparency to the investment product, in line with the increasing demand for clear and transparent fee structures in the ETF space.
Delving into the details of the changes, Balchunas focused on the new risk disclosures, suggesting that these could address specific concerns raised by the SEC’s Division of Corporation Finance (Corp Fin).
Interestingly, the application, even in a hybrid model, maintains a commitment to in-kind creations and redemptions. This decision is a strategic move to minimize tax impacts and address potential spread issues.
Balchunas explained, “Some tell me I ‘misheard’ when I said the SEC recommended issuers to make cash creations. I heard right, but some issuers will try to ‘sell’ the SEC on a more ‘in-kind’ approach given the obvious benefits it provides to investors. We’ll see how this plays out.”
Impact of SEC Delays on Spot Bitcoin ETF Approvals
In a previous report, James Seyffart provided insights into the SEC Division of Trading and Markets’ comments on the reasons for delaying the approvals of spot Bitcoin ETFs. Seyffart explained that delays are expected and are often considered a significant indicator of thought.
While there are concerns that the SEC’s cash creation request could adversely affect broker-dealers, Balchunas expressed optimism about the overall effectiveness of this approach. Delays in decisions on spot Bitcoin ETFs by companies like Franklin Templeton and Global X are causing speculation in the crypto space.
Seyffart suggested that the comment period initiated by the SEC would likely last at least 35 days and further extend the timeline for a final decision. Bloomberg analysts put the likelihood of approval for a spot Bitcoin ETF at around 90%.
