The article discusses the latest update regarding the spot Bitcoin ETF application by ARK and 21Shares as the next deadline set by the U.S. Securities and Exchange Commission (SEC) approaches. The companies have made their third amendment to the Bitcoin ETF prospectus since filing for it in April 2023.
The two firms have been actively pursuing the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. Despite previous rejections and delays, they continue to make amendments and updates to their prospectus in an effort to comply with SEC regulations and requirements.
It is worth noting that the SEC has been reluctant to approve a Bitcoin ETF due to concerns surrounding market manipulation and investor protection. However, there is growing optimism in the cryptocurrency community that a Bitcoin ETF may be approved in the near future.
ARK and 21Shares have made several changes to their prospectus in the latest amendment. These changes include updates to risk disclosures, the addition of a new authorized participant, and the clarification of the process for creating and redeeming shares of the ETF.
In addition to the amendments, ARK and 21Shares have also provided new information on the functioning of the Bitcoin ETF. They emphasize that the ETF will not invest directly in Bitcoin but will instead invest in Bitcoin futures contracts, which are traded on regulated exchanges.
This approach of investing indirectly in Bitcoin through futures contracts is seen as a way to address some of the regulatory concerns raised by the SEC. By investing in Bitcoin futures, the ETF aims to mitigate risks related to custody and security, as well as market manipulation.
The article also mentions that ARK and 21Shares have set the new deadline for the SEC to either approve or disapprove their Bitcoin ETF application for September 24, 2022. If the application is approved, it will mark a significant milestone for the cryptocurrency industry, as it will bring Bitcoin even closer to mainstream adoption and open the door for more institutional investors to enter the market.
Overall, the article highlights the ongoing efforts of ARK and 21Shares to secure approval for a spot Bitcoin ETF in the United States. Despite past rejections and regulatory challenges, these companies are determined to address the concerns raised by the SEC and provide a regulated and secure investment vehicle for Bitcoin in the form of an ETF.