ARK Investment Management has revised its spot Bitcoin exchange-traded fund (ETF) filing with the US Securities and Exchange Commission (SEC), following a similar move by BlackRock. The amendments to ARK's filing reportedly include agreements with the Chicago Mercantile Exchange (CME) Futures market and cryptocurrency exchanges, potentially including Coinbase, to oversee the sharing of data.
With this updated filing, ARK Investment Management has positioned itself ahead of its competitors in the race to launch the first Bitcoin ETF in the United States. The investment firm, led by Cathie Wood, and European asset manager 21Shares have previously sought approval for a spot Bitcoin ETF, but faced rejections in 2021 and 2022 due to non-compliance with practice and exchange law requirements for listing financial products. Bloomberg Intelligence ETF analyst James Seyffart confirmed that ARK's filing is currently the frontrunner for a Bit coin ETF, as its next SEC decision date is set for August 13. 2023.
However, even if ARK's filing is approved in the coming weeks, the process may not be fully concluded. The firm would still need to designate a cryptocurrency exchange to enter into a monitoring sharing agreement. While Coinbase is a potential candidate for this role, it has partnered with BlackRock to become a Bitcoin custodian if approved. This raises questions about whether BlackRock would allow Coinbase to enter into a sharing agreement with another company to assist another ETF issuer in front-loading their launch.
The entrance of BlackRock into the Bitcoin ETF arena on June 16 has triggered a wave of similar moves from other financial investment firms on Wall Street. Companies such as Valkyrie, WisdomTree, and Invesco have recently reapplied for spot Bitcoin ETFs, signal ing renewed interest and competition in the space.
