ARK Invest has changed its application to launch a spot Bitcoin ETF

What is a cryptocurrency ETF?  ForkLog explains
What is a cryptocurrency ETF?  ForkLog explains

Ark Invest has made changes to its joint application with 21Shares to register a spot Bitcoin ETF. Bloomberg analyst Eric Balchunas saw this as a “good sign.”

“The new S-1 has five additional pages, but new material is scattered throughout […]. What can we say? This means that ARK received the SEC’s comments and dealt with them all, and now has returned the ball to the regulator. For me, this is a good sign, solid progress,” – he wrote.

Separately, the specialist noted that “none of the comments were so new or comprehensive.”

The company’s updated application also included methods for storing assets and determining net asset value (in accordance with GAAP).

“Trust funds held by custodian [Coinbase Custody] are stored in separate accounts on the Bitcoin blockchain, commonly called walletsand therefore are not commingled with corporate or other client assets,” – Balchunas explained.

Bloomberg analyst James Seyffarth agreed with his colleague’s conclusions. He also noted that the changes reflected what the Commission wished to clarify.

“A good sign for future approval”“, the expert concluded.

Van Buren Capital General Partner Scott Johnsson noted that the supplements also included a commentary on the risks of the ETF’s value declining.

In particular, authorities may impose restrictions on the use of Bitcoin due to the negative impact of mining on the environment. Another factor could be the increasing frequency of digital gold being used for illegal purposes.

“Based on the ARK amendments, it does not appear that the agency is creating any unnecessary obstacles in reviewing disclosures.” – the specialist explained.

Previously, ex-Commission lawyer John Reed Stark ruled out approval of a spot Bitcoin exchange fund. However, Bernstein experts and former SEC Chairman Jay Clayton assessed the chances of a new wave of applicants as high.

Let us remember that ex-BlackRock director Stephen Schonfield suggested that the agency would approve the tool within three to six months.

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