ARK Invest becomes the front-runner in the battle for a spot Bitcoin ETF approval.
In the fiercely competitive scramble to establish the first Bitcoin exchange-traded fund (ETF) in the US, ARK Investment Management has taken significant steps forward.
Cathie Wood's investment firm amended its Bitcoin ETF application to include a surveillance sharing agreement, a move aiming to draw its application closer to the one issued by BlackRock.
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This recent amendment by ARK includes a surveillance-sharing agreement with the Chicago Mercantile Exchange (CME) futures markets and a yet-to-be-named cryptocurrency exchange.
Bloomberg ETF analyst, Eric Balchunas, suggests this partner will likely be Coinbase, adding intrigue to the development.
ARK’s updated application seems to have gained a head start in the Bitcoin ETF race, pushing it ahead of other contenders. The firm's pioneering strides signal intensified competition among companies to launch the United States' first Bitcoin ETF.
ARK Investment Management, backed by Cathie Wood and European asset manager 21Shares, had previously filed for a spot Bitcoin ETF twice in 2021 and 2022. However, both attempts were dismissed by regulators, citing a failure to satisfy the rules of practice and Exchange Act requirements for listing such a financial product.
Bloomberg Intelligence ETF analyst James Seyffart echoed the promising position of ARK in a recent interview.
21Shares, ARK and Cboe <Chicago Board Options Exchange> are first in line because their next SEC decision date is Aug. 13, 2023, and we don’t yet have a date for the other 19b-4 applications like the one from BlackRock.
However, even if ARK achieves regulatory approval in the coming weeks, the Bitcoin ETF storyline may still contain additional chapters. ARK would still need to finalize a surveillance-sharing agreement with a crypto exchange. Despite the prediction of Coinbase being a strong contender, it's important to note that Coinbase has already partnered with BlackRock to serve as a Bitcoin custodian upon receiving approval.
Meanwhile, BlackRock only joined the pool of applicants on June 16th, igniting a wave of subsequent filings on Wall Street. Financial institutions, including Valkyrie, WisdomTree, and Invesco, recently submitted applications for spot Bitcoin ETFs.
As ARK Investment Management solidifies its position in the race for the first Bitcoin ETF, it underlines the growing interest and competitive nature within the world of cryptocurrency-related investment products. The coming weeks promise to bring more excitement as the battle for Bitcoin ETF supremacy continues.
