January 5, 2024

ARK Invest files for Bitcoin ETF registration

ARK Investment Management, led by Cathie Wood, collaborates with Swiss crypto custodian 21Shares to file for the ARK 21Shares Bitcoin ETF. The regulatory clock is ticking, with the U.S. Securities and Exchange Commission (SEC) having until Jan. 10 to deliver its verdict on the application.

ARK 21Shares Bitcoin ETF Enters the Arena

In a strategic move, ARK 21Shares Bitcoin ETF has formally submitted a registration notice to the SEC, signaling its intent to become an exchange-traded fund. The filing, executed through Form 8-A, aims to list the ETF's shares as securities on the prestigious Cboe BZX Exchange, a bold step into the heart of the financial market.

Industry Peers Join the Race: A January Frenzy

Notably, Jan. 4 witnessed a flurry of activity in the ETF realm. Alongside ARK 21Shares, both VanEck Bitcoin Trust and Grayscale Bitcoin Trust utilized Form 8-A to register their shares as securities. The Cboe BZX Exchange and New York Stock Exchange Arca became the chosen platforms for VanEck and Grayscale, respectively. Adding to the momentum, Fidelity's spot Bitcoin ETF secured registration approval just a day prior.

SEC's Weighty Decision: To Approve or Reject?

The SEC, the gatekeeper of financial regulations, now stands at a pivotal crossroads. Until Jan. 10, the regulatory body must deliberate on the fate of ARK Invest and 21Shares' Bitcoin ETF. While many applications await consideration, the SEC has yet to greenlight a spot Bitcoin ETF for U.S. exchange listing. A significant precedent was set on Jan. 26, 2023, when the SEC rejected the ARK 21Shares Bitcoin ETF proposal, citing concerns about insufficient measures to prevent fraudulent and manipulative acts.

Legal Twist: A Regulatory Re-evaluation Unfolds

Fast forward to August 2023, and the legal landscape took an unexpected turn. U.S. Court of Appeals Circuit Judge Neomi Rao granted Grayscale Investments' petition, leading to a review of its spot Bitcoin ETF application and the vacating of the SEC's order to deny the GBTC listing. This legal development triggered a comprehensive re-evaluation of all pending spot Bitcoin ETF applications, injecting a new layer of uncertainty into the regulatory process.

Financial Implications: ARK 21Shares' Bold Fee Structure

If the SEC gives the green light, ARK 21Shares is set to implement an annual 0.80% management fee for its spot Bitcoin ETF. This fee, earmarked for operating expenses, including marketing and listing, underscores the strategic and financial foresight driving ARK Invest and 21Shares in this venture.

In an era where digital assets are gaining prominence, the ARK 21Shares Bitcoin ETF stands as a beacon of innovation and ambition. As the SEC deliberates, the financial world watches with bated breath, anticipating the potential approval that could reshape the landscape of cryptocurrency investments.

Source: Cointelegraph

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