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Cathie Wood’s Ark Invest pulls a 3rd Bitcoin ETF amendment filing – Details

In this post:

  • Ark Invest, under Cathie Wood, has submitted a 3rd amendment to their Spot Bitcoin ETF filing, showcasing a commitment to serve United States crypto investors.
  • According to the amended filing, the ARK 21Shares Bitcoin ETF will be traded on the BZX Exchange by the Chicago Board Options Exchange (CBOE) under the ticker symbol ARKB once approved.
  • The SEC’s cash request could affect broker-dealers, but Balchunas remains optimistic about its efficiency. Bloomberg analysts still expect a spot Bitcoin ETF approval at 90%.

Cathie Wood’s Ark Invest has unexpectedly submitted its third amendment to the Bitcoin ETF filing, which contains substantial changes that have captured the attention of the financial community. At this time, ARK Invest remains committed to its objective of establishing an exchange-traded fund (ETF) specializing in spot Bitcoin within the United States.

Ark Invest sends shockwaves through the crypto industry

On November 20, ARK Invest submitted a revised prospectus for its spot Bitcoin ETF, which it developed in partnership with the European digital asset management 21Shares. 

Eric Balchunas, Bloomberg’s ETF specialist, delivered the shocking news, describing it as a positive step forward in the Securities and Exchange Commission (SEC) certification process.

The amended filing states that once approved, the ARK and 21Shares Bitcoin ETF, known as the ARK 21Shares Bitcoin ETF, will be traded on the BZX Exchange by the Chicago Board Options Exchange (CBOE) under the ticker symbol ARKB.

The revelation of a fee for the new ETF was one noticeable component that piqued the interest of experts and investors alike. Balchunas disclosed that ARKB would charge 80 basis points (bps), making Ark Invest the first issuer to do so. 

This decision is noteworthy because it provides a layer of transparency to the investment product, matching with the growing desire in the ETF industry for clear and explicit fee structures.

The most recent revision is the third amendment to the Bitcoin ETF prospectus that ARK and 21Shares submitted in April 2023, when they initially filed for a spot Bitcoin ETF. Experts regarded the October amendment by ARK to its form S-1 registration statement for its spot Bitcoin ETF as a “good sign ” of development.

What is the future of BTC ETFs in the United States?

The anticipated SEC ruling on ARK’s spot Bitcoin ETF application was once more postponed in September 2023. The SEC has established January 11, 2024, as the subsequent deadline for its decision.

As per Eric Balchunas, an analyst at Bloomberg ETFs, the most recent filing comprises several revisions, among which are a multitude of risk disclosures intended to fulfill corporate finance’s obligations.

According to his assessment, the SEC’s Division of Corporation Finance (Corp Fin) identified particular concerns that these additions were expected to rectify. 

Amazingly, the filing maintains a commitment to in-kind creations and redemptions, albeit under a hybrid model. By choosing this course of action, the risk associated with taxes can be mitigated, and potential spread concerns can be resolved. Balchunas states that:

Some are coming at me with how I must have ‘heard wrong’ re SEC advising issuers to do cash creations. I heard correctly, but some issuers are going to try and push back and ‘sell’ the SEC on in-kind given the obvious benefits for investors. We’ll see how this plays out.

Eric Balchunas

According to Bloomberg ETF analyst James Seyffart, the latest filing likely signals that things are progressing with the SEC conversations.

While ARK has aggressively revised its S-1 spot Bitcoin ETF application, some spot Bitcoin ETF filers have yet to do so. Franklin Templeton and Global X were the only two firms out of the 12 top Bitcoin ETF filers that had not revised their S-1 filings as of mid-November, according to Steyfart’s data.

The SEC’s request for cash may have an impact on broker-dealers, but Balchunas is optimistic about the overall efficiency of this strategy. Overall, Bloomberg analysts maintain a 90% probability of a spot Bitcoin ETF approval.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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