- On Wednesday, October 11, investment management firm Ark Invest updated its spot Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC).
- The new prospectus includes information that Net Asset Value (NAV) calculations deviate from Generally Accepted Accounting Principles (GAAP), addressing a concern previously raised by the SEC.
- Last week, Eric Balchunas assessed the likelihood of rejection as low, considering the unique engagement the SEC has shown on ongoing applications.
It was revealed that ARK Invest made an update to the spot Bitcoin ETF application file with the US Securities and Exchange Commission (SEC).
ARK Invest Updates Its Bitcoin ETF Application
On Wednesday, October 11, investment management firm Ark Invest updated its spot Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC). This development comes as many major financial players are refining and reworking their applications to comply with SEC requirements.
This move signals further progress toward the approval of future deposit Bitcoin ETFs. Bloomberg’s senior ETF strategist Eric Balchunas was one of the first to report this. ARK submitted a new deposit Bitcoin ETF prospectus, likely addressing the SEC’s questions and comments conveyed to issuers a few weeks ago regarding S-1 filings.
One significant revision observed in the updated prospectus pertains to the Net Asset Value (NAV) Determination section. The new prospectus includes information that NAV calculations deviate from Generally Accepted Accounting Principles (GAAP), addressing a concern previously raised by the SEC.
Another update specifies that assets held in trusts are stored in segregated accounts (wallets) when held with the Custodian. This arrangement ensures the assets remain separate from the company’s or other clients’ assets.
The subsequent sections of the S-1 form also contain various other content, indicating ARK has comprehensively addressed the SEC’s comments. With all concerns now addressed, the final decision rests with the SEC regarding approval.
Last week, Eric Balchunas assessed the likelihood of rejection as low, considering the unique engagement the SEC has shown on ongoing applications, predicting a 75% probability of approval by year-end.
BTC’s Future Price Action
Currently, Bitcoin investors’ hopes are pinned on the potential new liquidity that would open up with the approval of the deposit Bitcoin ETF by the SEC. Current macro developments and expectations of a Fed interest rate hike by year-end pushed Bitcoin’s price below $27,000. However, just two weeks ago, the SEC further postponed the approval of applications from BlackRock, Bitwise, and others.
ARK Invest’s updated Bitcoin ETF application showcases a positive ongoing dialogue between regulators and financial giants. Application holders are more confident than ever about bringing their products to the market.
During developments surrounding the Bitcoin ETF, some analysts believe it’s a good time for long-term investors to start accumulating BTC from this point onward.
