Cathie Wood’s ARK Invest Advances Bitcoin ETF Approval with Key Amendment

ARK Invest has made a recent amendment to ARK Invest and 21Shares’ joint spot Bitcoin exchange-traded fund (ETF) application.

The amended filing, dated Nov. 20, offers insights into the proposed spot Bitcoin ETF, delving into key aspects such as custody practices and asset valuation methods.

Bloomberg Research Analyst James Seyffart noted a subtle yet noteworthy change: the fee has shifted from 70 bps to 80 bps, indicating a higher range for the expected expense ratios of these spot Bitcoin ETFs.

According to Bloomberg senior ETF analyst Eric Balchunas, these amendments can be viewed as a positive response to concerns raised by the Securities and Exchange Commission (SEC). 

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Previous Amendments and Surveillance-Sharing Agreement

Last June, Cathie Wood's ARK Invest filed for an amendment that included a surveillance-sharing agreement, aligning with industry practices observed with entities like BlackRock.

The proposed agreement involves collaboration between the Cboe BZX Exchange, where the ETF would be listed, and a U.S.-based spot Bitcoin trading platform. Such surveillance-sharing agreements aim to enhance market integrity by sharing information on trading activity, clearing operations, and customer identification to mitigate the risks of market manipulation. 

Additionally, an amended Oct. 11 filing to the Securities and Exchange Commission for approval includes additional information about the proposed spot Bitcoin ETF, including how the fund will custody assets and determine asset values.

The Securities and Exchange Commission (SEC) has consistently delayed the approval of Bitcoin ETFs this year, and the latest notes indicate further delays. Approvals for Franklin Templeton's and Global X's spot Bitcoin ETF applications have been pushed into early 2024.