ARK Invest suddenly changed the application for a bitcoin ETF
Date: 2023-06-30 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
Cathie Wood's Ark Invest Fund has amended the application to open a spot bitcoin ETF, adding a clause on joint surveillance.
After the changes, the application to the U.S. Securities and Exchange Commission (SEC) has become similar to BlackRock's recent filing. Among the amendments is a joint surveillance agreement with the futures markets of the Chicago Mercantile Exchange (CME) and the cryptocurrency exchange. However, it is not specified which platform we are talking about.
The Surveillance Data Exchange Agreement (SSA) refers to information that is shared with regulators to prevent potential market manipulation. For example, it can be market trading or clearing activities, as well as customer identification.
Notably, rejected or pending applications did not have an SSA clause. BlackRock was the first to include this agreement last weeк
The second attempt of Ark Invest
This is Ark Invest's second attempt to apply for a bitcoin ETF. The last time the fund tried to open an exchange-traded fund was in 2021 with global crypto ETF provider 21Shares.
The application was filed on October 13 by ETF issuer Alpha Architect. At the same time, the 21Shares fund is listed in it as a co-investor consultant, and Ark is responsible for marketing. However, the initiative was rejected by the SEC.
Financial giants open bitcoin ETFs
In the middle of the month, BlackRock applied to open a spot bitcoin ETF - iSHARES BITCOIN TRUST. The fund's initiative provoked a wave of applications for the launch of similar ETFs from financial giants.
Following BlackRock, the investment giant Bitwise Asset Management decided to open a spot bitcoin ETF. On June 16, he refiled after the SEC rejected the company's petition last year, citing that it would fail to provide adequate joint surveillance and protect investors from market manipulation.
Further, the baton was picked up by the well-known service provider in the segment of ETFs and exchange-traded products WisdomTree. He also tried to file an application with the SEC in 2021, however, the Commission rejected it. Invesco also applied again.
The last to join the race was the financial giant Fidelity Investments. Rumors about a possible application have been going on for several weeks, but it is not clear exactly when the company will turn to the SEC to open an ETF. In 2021, the company applied to create a spot ETF on Wise Origin Bitcoin Trust, but the Commission rejected it early last year.
