A surprise front-runner has stoked the flames of the Bitcoin ETF craze. Contrary to what many in the industry believe, Cathie Wood’s Ark Invest might be the first in line to receive clearance for a spot Bitcoin ETF rather than BlackRock.
According to analyst Yassine Elmandjra, BlackRock’s spot filing application has hogged the limelight for its inclusion of a ” unique” exchange surveillance-sharing arrangement that aims to stop market manipulation.
Nevertheless, “other applicants will be able to amend their filings with similar agreements at little cost,” Elmandjra claimed.
James Seyffart, an ETF analyst for Bloomberg Intelligence, outlined why he believes ARK, not BlackRock, is one of the top competitors.
21Shares, ARK, and Cboe are first in line because their next SEC decision date is 8/13/23 and we don’t yet have a date for the other 19b-4 applications like the one from BlackRock. I would assume Cboe is looking to update their 19b-4 rule change proposal to add a surveillance-sharing agreement with Coinbase if they believe it could be a path to an ETF approval.
In June 2021, Ark Invest submitted its first application for the Ark21Shares ETF by teaming with the Swiss ETF provider 21Shares AG; if approved, it will trade on Cboe’s BZX Exchange under the ticker symbol ARKB.
The firm is also the first to disclose the fees for its Bitcoin ETF; according to the filing, a proposed fee of 0.95% will be paid to 21Shares, which will use the money to pay operating costs.
Bitcoin ETF Hype Reignited With BlackRock’s Filing
So far, there is no spot bitcoin exchange-traded fund in the US since regulators have previously turned down several proposals claiming they would have encouraged market manipulation.
Still, despite numerous rejections and delays, the crypto industry remains optimistic.
Following BlackRock’s application for a Bitcoin ETF filing this month, one of the largest asset management companies in the world with more than $8 trillion in assets, the hype cycle surrounding a prospective launch was reignited.
Other leading AUMs like WisdomTree and $1.5 trillion asset manager Invesco too followed suit. The latter dropped its 19b-4 application for the second time after a similar filing back in the fall of 2021.