Why Ark Invest’s Updated Bitcoin ETF Filing Is Bullish for BTC Price?

On Wednesday, October 11, investment management firm Ark Invest updated its spot Bitcoin ETF filing with the U.S. Securities and Exchange Commission (SEC). This development comes as many big financial players have been refining and streamlining their filings in accordance with the SEC requirements.

Ark Invest Spot Bitcoin ETF Update

This development signals further progress towards the future approval of the spot Bitcoin ETF. Bloomberg’s senior ETF strategist Eric Balchunas was among the first to report this. ARK has recently submitted a revised spot Bitcoin ETF prospectus, possibly addressing the SEC’s inquiries and comments conveyed to issuers a few weeks ago regarding their S-1 filings, he noted.

ARK has just filed an updated version of its spot bitcoin ETF prospectus. The SEC emailed issuers a few wks ago with comments/qs about their S-1 that they wanted addressed so is very poss ARK has answered all that in this filing. We looking thru it now.. pic.twitter.com/AlwTt82WU0

— Eric Balchunas (@EricBalchunas) October 11, 2023

One of the notable revisions observed in the updated prospectus pertains to the Net Assets Value (NAV) Determination section. The new prospectus includes information indicating that the NAV calculation deviates from Generally Accepted Accounting Principles (GAAP), addressing a concern previously raised by the SEC during their recent comments.

An additional update outlines that the Trust’s assets are stored in segregated accounts (wallets) on the Bitcoin (BTC) blockchain when held with the Custodian. This arrangement ensures that the assets remain distinct from corporate or other customer assets.

The subsequent sections of the S-1 form also contain a wealth of other content. It indicates that ARK has addressed the SEC’s comments comprehensively. With all the concerns now answered, the final decision lies with the SEC regarding approval.

Last week Eric Balchunas said that given the SEC’s unprecedented engagement with spot bitcoin issuers on their ongoing applications, we consider the likelihood of rejection to be low, estimating a 75% chance of approval by year-end.

BTC Price Action Ahead

All hopes for Bitcoin investors are currently on the approval of the spot Bitcoin ETF by the SEC as it will usher new liquidity in the market. The current macro developments and expectations of the Fed rate hike by year-end, have pushed the Bitcoin price under $27,000. However, just two weeks back, the SEC further delayed the approval of applications by BlackRock, Bitwise, and others.

Ark Invest’s updated Bitcoin ETF filing suggests that there’s a positive ongoing dialogue between the regulator and the financial giants. The applicants are more confident than ever before in bringing the products to the market.

Amid the developments around Bitcoin ETF, some analysts believe that it is a good time for long-term investors to start buying BTC from here onwards.

#Bitcoin into that area of potential longs. I'm starting to buy some here, let's see where we're heading with CPI tomorrow.

Dollar & Yields turning down, Nasdaq & Gold up. #Bitcoin is lagging behind. pic.twitter.com/t477bJsgXS

— Michaël van de Poppe (@CryptoMichNL) October 11, 2023