Just-In: Cathie Wood’s Ark Tries Again For A Spot Bitcoin ETF

Ark Investment and 21Shares have again filed with the U.S. SEC for listing a spot Bitcoin ETF under Cboe BZX Exchange. After the SEC rejected the ARK 21Shares Bitcoin ETF in early April, the companies have now filed application under the BZX Rule 14.11(e)(4), Commodity-Based Trust Shares.

Ark 21Shares Bitcoin ETF Seeks Approval Under New Rule

The SEC had rejected several Bitcoin ETFs citing concerns over investor protection. However, the SEC has approved futures Bitcoin ETF including the Teucrium Bitcoin Futures Fund and Valkyrie’s XBTO Bitcoin Futures Fund under the Securities Exchange Act of 1934.

Ark Investment and 21Shares have filed again with the SEC for the Ark 21Shares Spot Bitcoin ETF after the last filing under the Securities Exchange Act of 1933 was rejected by the SEC. The companies are now planning to list and trade the spot Bitcoin ETF under the BZX Rule 14.11(e)(4). The BZX Rule is for listing commodity-based trusted shares under the Cboe BZX Exchange.

The Ark 21Shares Bitcoin ETF will track the price of Bitcoin in spot markets. However, the SEC has not approved a single spot crypto ETF, including a spot Bitcoin ETF. Thus, the chances of approval seem less as the SEC has maintained a negative stance against cryptocurrencies. Moreover, investor protection remains a concern for the regulatory body.

However, the pressure on the SEC for approving a spot Bitcoin ETF is increasing as the U.S. lags behind other countries in approving a Bitcoin ETF. Countries such as Canada, Switzerland, and Australia have approved Bitcoin ETF.

The exchange and companies seek approval on the basis of the CME Bitcoin Futures being a regulated market for the spot Bitcoin market.

“The CME Bitcoin Futures market represents a regulated market of significant size as it relates both to the CME Bitcoin Futures market and to the spot bitcoin market and that this proposal should be approved.”

Grayscale Bitcoin ETF Approval Remains Under Shadow

The SEC is yet to approve a spot Bitcoin ETF. Grayscale Investments is keen for a spot Bitcoin ETF to be approved. The company is currently seeking a conversion of its Bitcoin Trust to Bitcoin ETF. Grayscale’s CEO Michael Sonnenshein is optimistic about the approval of the conversion. Moreover, Sonnenshein believes the company will sue the SEC in case of rejection.