Ark Invest, the investment firm led by Cathie Wood, and 21Shares, a Swiss-based crypto asset manager, have made another change to their joint filing for a spot Bitcoin ETF ($ARKB) on the eve of the final deadline set by the U.S. Securities and Exchange Commission (SEC).
The two firms submitted amendment no. 5 to the form S-1 registration statement on Thursday, December 28, 2023, amid high expectations of a positive decision from the SEC in the coming weeks. The latest amendment is said to focus on changes to the terms followed by the authorized participants, who are responsible for creating and redeeming shares of the ETF.
However, this may not be the last amendment before the Ark 21Shares Bitcoin ETF launch, according to Eric Balchunas, senior ETF Analyst at Bloomberg. He tweeted that the naming of authorized participants could be seen in the final effective update before the ETF goes live. He also added that it is unclear if the SEC and the Ark 21Shares partnership have agreed.
Ark Invest Positions For ETF Momentum
The amendment from Ark 21Shares comes as the Cathie Wood firm closed out its position in the Grayscale Bitcoin Trust (GBTC), a popular investment vehicle that offers exposure to Bitcoin through a trust structure. This move suggests that Ark Invest is preparing for a shift in strategy ahead of the Bitcoin ETF approval in early January 2024.
Wood has been vocal about her bullish outlook on Bitcoin and her confidence in the SEC’s approval of a spot ETF, which would track the price of the underlying asset directly, unlike the futures-based exchange-traded funds already available in the U.S. market. In a recent interview, Wood’s discussions with the SEC staff on the ETFs are very positive and encouraging.
On the other hand, the crypto community eagerly awaits the Bitcoin Halving event, which is expected to occur in the second quarter of 2024. Halving is a process that reduces the number of new bitcoins created by half every four years, making the supply of the cryptocurrency more scarce and potentially increasing its value. Significant price rallies have followed the previous halving events.
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