Arc Invest, an asset management company led by world-renowned investment expert Cathie Wood , is continuing its efforts to launch a Bitcoin spot exchange-traded fund (ETF) in the United States.
On the 21st, Arc Invest, in collaboration with 21 Shares, a European-based digital asset management company, revised the application for a Bitcoin spot ETF product and submitted it to the U.S. Securities and Exchange Commission (SEC).
Why it matters : ArkInvest is one of the most active companies in launching Bitcoin spot ETFs. The SEC must decide whether to approve ArcInvest's ETF by January next year. During this process, Ark Invest is revising the ETF application several times. This may also affect ETFs submitted by other asset managers, so keep an eye on the process.
What's new : This is the third amendment submission since ArkInvest first applied for a Bitcoin spot ETF in April. Last October, ArcInvest revised its Form S-1 for its Bitcoin spot ETF. At that time, the amendment added investment risks, such as the risks of the Bitcoin network and competition within the industry. In response, experts evaluated it as “good progress” toward final approval.
Bloomberg ETF analyst Eric Balchunas said the recently submitted amendments include several updates, including disclosure of numerous risks to meet corporate finance requirements. “What’s interesting is that you can stick to in-kind redemptions to minimize the tax implications and the price difference that arises on the transaction,” Balchunas said, adding, “It’s a little shocking in a good way, to be honest.”
ARK has just updated its S-1 again, amendment #3. Semi-shocker to be honest but in a good way. The more updates to these documents the better, shows them getting these bad boys in shape for SEC approval. pic.twitter.com/96GLGsFupS
— Eric Balchunas (@EricBalchunas) November 20, 2023
James Seipart, a Bloomberg ETF expert, also commented, “This means that the dialogue between ArkInvest and the SEC is progressing.”
Update: @ARKInvest just filed another amended prospectus for their spot #bitcoin ETF. Unlikely means things are likely still moving with SEC conversations. pic.twitter.com/Of2S1pONDc
— James Seyffart (@JSeyff) November 20, 2023
Quite the opposite story : Although ArkInvest is actively revising the Bitcoin spot ETF application, some asset managers have not amended their applications. According to Seypart 's analysis, as of mid-November , Global
What's Next : The SEC postponed a decision on approving the Bitcoin spot ETF applied by ArcInvest in September. The SEC must make a final decision on the case by January 11th of next year.
According to recent documents, ArkInvest and 21Shares ' Bitcoin spot ETF will be traded under the symbol 'ARKB' on the Chicago Board Options Exchange (CBOE)'s BZX exchange.
Impact on the market : Thanks to this news, the price of Bitcoin on the 21st is trading at $37,106, up 1.4% from 24 hours ago. At one point, it rose to $37,600 and attempted to surpass the 38,000 mark again.
Key people/terms
- S-1 document: A document submitted by a specific company to the SEC for a securities offering and contains business and financial information of the issuing company.
- BZX Exchange: BZX was a financial products exchange operated by Bats Global Markets, and was acquired by the Chicago Board Options Exchange in 2017.
All information contained on our site is published in good faith and for general information purposes only. Please note that you are solely responsible for the use of information on our site.
