Cathie Wood-led Ark Invest has made significant modifications to its spot Bitcoin ETF proposal, addressing concerns raised by the U.S. Securities and Exchange Commission [SEC] regarding Coinbase’s custodial practices. The amendment, filed on October 11, outlines the segregation of the trust’s assets with the custodian, emphasizing that they are held in segregated accounts on the Bitcoin blockchain, commonly known as “wallets,” ensuring they are not mixed with corporate or other customer assets.
Eric Balchunas, senior ETF analyst for Bloomberg, lauded Ark Invest for these crucial details and its ongoing dialogue with the SEC. While immediate approval may not be on the horizon, experts view these developments as positive steps toward eventual acceptance. Balchunas noted the back-and-forth discussions between issuers and the SEC as a promising sign, despite the possibility of further iterations on these essential details.
So what does this mean? It means ARK got the SEC’s comments, has dealt with them all, and now puts the ball back in the SEC’s court. IMO, good sign, solid progress. One note: It is very possible there will be a few back-and-forths with the SEC on these small but important details. So I would not say approval is imminent, but I would say the fact that issuers are in a “back and forth” with the SEC on this is hugely positive, IMO.
The SEC had previously criticized spot Bitcoin ETF applications for lacking robust surveillance-sharing agreements. To address this concern, several applications, including Ark Invest’s, incorporated agreements with Coinbase through amendments submitted in July, demonstrating a proactive approach to resolving regulatory hurdles.
Cathie Wood, CEO of Ark Invest, expressed newfound optimism about the potential approval of a Bitcoin spot ETF in the United States. She indicated that the odds of approval were increasing, signaling a positive outlook amidst a backdrop of multiple entities, including financial giants like Fidelity and BlackRock, striving to launch Bitcoin ETFs. This growing interest highlights the industry’s momentum toward providing investors with easier access to cryptocurrencies.
Ark Invest Bitcoin ETF Bid: All Eyes on the SEC
The journey toward approving a Bitcoin spot ETF in the U.S. has been challenging, marked by multiple applications, delays, and discussions with the SEC. Prominent financial firms, including VanEck and Fidelity, have filed proposals, but the SEC has delayed decisions on these applications, indicating the complexity of the regulatory process.
Despite the obstacles, Wood remains optimistic about the future. She revealed Ark Invest’s partnership with 21Shares in the U.S., expressing hope for the eventual launch of a Bitcoin ETF once approved by the SEC.