- An amended filing of ARK Invest and 21Shares’ joint spot Bitcoin (BTC) exchange-traded fund (ETF) application appears to be a response to concerns previously noted by the SEC.
- An amended filing for approval with the U.S. Securities and Exchange Commission, dated October 11, contains additional information about the proposed spot Bitcoin ETF.
- Balchunas added that changes “are sprinkled throughout,” the new dossier is five pages longer, and “no comment is new or insurmountable.”
According to ARK Invest’s latest updates on its spot Bitcoin ETF application, the likelihood of SEC approval is increasing: ETF analysts announced!
What Does ARK’s Bitcoin ETF Move Signify?
ARK Invest and 21Shares have filed an amended application for their joint spot Bitcoin (BTC) exchange-traded fund (ETF), which appears to address previous concerns expressed by the SEC.
An amended application dated October 11 for approval by the US Securities and Exchange Commission (SEC) contains additional information about the proposed spot Bitcoin ETF. It includes details about the fund’s asset custody and methods for determining asset values.
Eric Balchunas, a senior ETF analyst at Bloomberg, stated that the changes could be a direct response to issues the SEC raised with ETF issuers:
“This means ARK has taken in SEC comments and dealt with them all and thrown the ball back in the SEC’s court. This is a positive sign in my view, solid progress.”
Balchunas noted that the changes are “sprinkled throughout,” the new filing is five pages longer, and “no comment seems unaddressed.” Among the changes is ARK stating that the fund’s net asset value (NAV) calculations are not in accordance with Generally Accepted Accounting Principles (GAAP).
The new filing also mentions that the ETF’s assets are held by Coinbase Custody and are “held in segregated accounts […] and, therefore, not commingled with other customer assets.”
Seyffart also commented on ARK’s move
Bloomberg ETF analyst James Seyffart noted in a comment on X post that this recent change shows ARK and others communicating with the SEC about what is required. He added, “In my opinion, a good sign for future approval.”
Scott Johnsson, Managing Partner at Van Buren Capital, added that the ETF’s value could decrease if Bitcoin becomes increasingly associated with illegal activities and if restrictions on the environmental impact of Bitcoin mining are imposed.
Scott Johnsson stated, “I still chuckle a little at this “electricity use” risk factor. Ark couldn’t be bothered to add more than a consistent headline summary or a few short sentences. Our conversation with the SEC was like “oh yeah, calling Mr. SEC lawyer was good, this is definitely important.”
Johnsson added that based on the changes, ARK “doesn’t seem to be showing that they put unnecessary barriers in place.”
