A surveillance sharing contract is now a part of the third application for a spot Bitcoin ETF from ARK Invest and 21Shares.
Following a similar filing by BlackRock, ARK Investment Management has updated its spot Bitcoin exchange-traded fund (ETF) application with the US Securities and Exchange Commission (SEC). According to Bloomberg ETF analyst Eric Balchunas, the revisions include a surveillance sharing arrangement with the Chicago Mercantile Exchange (CME) futures markets and a cryptocurrency exchange, most likely Coinbase.
For the third time in April, the investment firm of Cathie Wood, ARK, and the European asset management 21Shares have applied for a spot Bitcoin ETF. The SEC rejected earlier petitions in 2021 and 2022, claiming noncompliance with the Exchange Act’s requirements for listing a financial product and rules of practice.
James Seyffart, an ETF analyst for Bloomberg Intelligence, claimed that ARK’s ETF application is now the front-runner for a Bitcoin ETF. He indicated that the SEC’s decision would be made on August 13, 2023, and that ARK, 21Shares, and the Chicago Board Options Exchange (Cboe) are in front of the queue. Seyffart pointed out that no deadline has been set for the other 19b-4 applications, such as BlackRock’s, yet.
Related: First Leveraged Bitcoin Futures ETF Starts Trading on CBOE
The procedure for a BTC ETF might not be finished even if ARK is given approval in the upcoming weeks because it still needs to sign a surveillance-sharing arrangement with a cryptocurrency exchange. Despite the fact that Coinbase has previously collaborated with BlackRock as a Bitcoin custodian, if approval is granted, it might be a good candidate.
BlackRock’s June 16 application for a Bitcoin ETF has sparked a surge of related Wall Street activities, particularly among prior applicants. Valkyrie, WisdomTree, and Invesco, among other financial investing organizations, have just resubmitted their applications for spot Bitcoin ETFs.
As more companies request regulatory approval, the race for a Bitcoin ETF approval in the United States is picking up speed. The launch of such ETFs may offer regular investors a regulated means of getting exposure to Bitcoin, drawing potentially large sums of money and further integrating cryptocurrencies into conventional finance.
The pursuit of a Bitcoin ETF by reputable investment management companies like ARK and BlackRock indicates increased institutional interest in and acceptance of cryptocurrencies. Additionally, it reflects the changing regulatory environment and the SEC’s ongoing assessment of the appropriateness and compliance of such financial products.
The SEC will evaluate each proposal based on a variety of criteria, including market manipulation concerns, investor protection, and regulatory compliance. The SEC will ultimately decide whether to approve a Bitcoin ETF.
Related: Cathie Wood's ARK Invest Poised to Launch Spot Bitcoin ETF
The results of these applications and the subsequent introduction of a Bitcoin ETF in the US may have a huge effect on the cryptocurrency market, potentially luring more institutional investors and promoting a wider acceptance of cryptocurrencies.