ARK Invest and 21Shares have once again filed with the US Securities and Exchange Commission (SEC) for the approval of a Bitcoin exchange-traded fund (ETF). This marks the third time the two firms have submitted their proposal to the SEC in the hope of gaining approval for the ETF.
The first time ARK and 21Shares submitted their proposal was back in 2017, but it was turned down by the SEC due to concerns over the lack of reliable pricing data for Bitcoin. The second time the proposal was submitted was in 2019, but it was also rejected by the SEC.
Despite these setbacks, both ARK and 21Shares have remained determined to gain approval for the Bitcoin ETF. In their latest proposal, they have made some changes to their previous submission, such as including more detailed information about the Bitcoin market and addressing the SEC’s concerns regarding market manipulation and investor protection.
The proposed Bitcoin ETF would hold Bitcoin and allow investors to trade it on the stock exchange. This would provide a more accessible and regulated way for investors to gain exposure to Bitcoin, which has become increasingly popular as an investment asset over the years.
There are already a number of Bitcoin ETFs available in other countries, such as in Canada and Europe, but the US has yet to approve one. This is partly due to concerns over potential market manipulation, as Bitcoin is not regulated in the same way as traditional investment assets such as stocks and bonds.
However, many industry experts believe that the approval of a Bitcoin ETF in the US is inevitable, and that it could even lead to a surge in the value of Bitcoin. This is because it would allow more traditional investors, such as institutional investors and pension funds, to invest in Bitcoin, potentially driving up demand and pushing the price of Bitcoin higher.
ARK and 21Shares are not the only firms attempting to gain approval for a Bitcoin ETF in the US. Several other firms, including VanEck and NYDIG, have also submitted proposals to the SEC. However, none of these proposals have been approved so far.
The SEC has not given a timeline for when it will make a decision on the ARK and 21Shares proposal, but it is expected to take some time. The SEC has previously said that it needs to see a greater level of regulatory oversight and protection for investors before it can approve a Bitcoin ETF in the US.
Despite the setbacks so far, ARK and 21Shares are confident that their latest proposal addresses the SEC’s concerns and will eventually gain approval. If it does, it could be a significant step forward for the adoption of Bitcoin and other cryptocurrencies in the US, and could attract a whole new wave of investors to the market.
In conclusion, the third time might be the charm for ARK and 21Shares as they file once again for the approval of a Bitcoin ETF with the SEC. While the approval process may take time, if approved, it could be a significant milestone for Bitcoin and the wider cryptocurrency market in the US.
Cathie Wood’s ARK Invest and 21Shares, a European Crypto investment firm, have requested the approval of a spot Bitcoin exchange-traded fund (ETF) once again, despite being rejected twice before by the U.S. Securities and Exchange Commission (SEC). An ETF offers investors exposure to a particular asset without them owning the underlying product. A spot Bitcoin ETF offers indirect exposure to the cryptocurrency with shares that track BTC’s price in real-time without actually holding Bitcoin.
Although the SEC has approved multiple Bitcoin Futures ETFs that expose buyers to the future value of BTC, it has not approved any spot Bitcoin ETF applications citing difficulties with “protecting investors and the public interest” against fraud and manipulation. According to ETF analysts from Bloomberg, a spot Bitcoin ETF could become a reality in the U.S. midway through this year.
Digital Currency Group (DCG), a crypto conglomerate, is also seeking to convert its Grayscale Bitcoin Investment Trust (GBTC) into a spot Bitcoin ETF and has sued the SEC for rejecting its proposal. The case is moving swiftly, and oral arguments may be as soon as Q2 2023.
Despite the regulatory environment in the United States, Cathie Wood’s ARK Invest and European crypto investment firm 21Shares are seemingly unperturbed and are attempting to bring a spot Bitcoin ETF to the U.S. market. It remains to be seen whether they will be successful in obtaining approval, but it is clear that the demand for a spot Bitcoin ETF is there as investors continue to seek exposure to the cryptocurrency without physically owning it.
