ARK Invest and 21Shares have taken the lead in a race to file amendment updates for their spot Bitcoin exchange-traded fund (ETF) proposals. Both companies submitted their filings ahead of the December 29th deadline set by the U.S. Securities and Exchange Commission (SEC).
ARK Invest, an investment management firm focused on disruptive innovation, and 21Shares, a Swiss-based cryptocurrency investment product provider, are among several companies vying for approval to launch a Bitcoin ETF in the United States. An ETF is a type of investment fund that tracks the value of an underlying asset, in this case, Bitcoin.
The deadline, set by the SEC, requires companies to provide amendments to their proposals in response to issues raised by SEC staff. This is a key part of the approval process, as it allows companies to address concerns and provide further information.
In the case of ARK Invest, the company filed an amendment to its application for the ARK 21Shares Bitcoin ETF. The fund would aim to track the performance of Bitcoin futures contracts. The amendment included updates to the fund’s investment strategy and disclosure of potential conflicts of interest.
ARK Invest’s Bitcoin ETF proposal has garnered significant attention, as the company is known for its focus on disruptive technologies and has been a vocal supporter of Bitcoin. If approved, the ARK 21Shares Bitcoin ETF would offer investors a way to gain exposure to Bitcoin without having to directly own the cryptocurrency.
21Shares, on the other hand, submitted an amendment to its application for the Bitcoin ETP, which would track the performance of Bitcoin directly. The company’s filing included updates to the issuer’s fee structure, fund composition, and risk factors.
Both ARK Invest and 21Shares are hoping to be the first companies to launch a spot Bitcoin ETF in the United States. While several companies have filed proposals for Bitcoin ETFs, the SEC has yet to approve any. The SEC has raised concerns about market manipulation and investor protection, stating that it needs more information before it can make a decision.
Despite the delays, there is growing optimism that the SEC may finally approve a Bitcoin ETF in the near future. The recent approval of a Bitcoin futures ETF in Canada has only increased the anticipation for a similar product in the United States.
If approved, a Bitcoin ETF could open the floodgates for institutional and retail investors to gain exposure to Bitcoin. It would provide a regulated and accessible way to invest in the cryptocurrency, potentially driving further adoption and increasing the legitimacy of the asset class.
In conclusion, ARK Invest and 21Shares have submitted amendment updates to their spot Bitcoin ETF filings ahead of the SEC’s deadline. These filings are a crucial step in the approval process and allow the companies to address concerns and provide additional information. Despite the delays and uncertainty surrounding Bitcoin ETFs, there is growing optimism that the SEC may approve a Bitcoin ETF in the near future, which could have significant implications for the cryptocurrency market.