Connect with us
Active Currencies 11383
Market Cap $1,718,520,831,388.30
Bitcoin Share 50.09%
24h Market Cap Change $0.06

Is an SEC approval possible with ARK’s amended spot Bitcoin ETF

2min Read

ARK Invest and 21Shares recently amended their joint spot Bitcoin ETF application and submitted it to the U.S. SEC.

bitcoin etf

Share this article

  • The latest Bitcoin ETF application details how fund assets are “not commingled” with corporate or other customer assets.
  • Analysts have noted how the latest filing addressed nearly all the concerns of the SEC.

On 11 October, Cathie Wood’s ARK Invest and 21Shares amended their joint spot Bitcoin [BTC] exchange-traded fund (ETF) application and submitted it to the U.S. Securities and Exchange Commission (SEC).

The latest application includes additional information on how the ETF would manage assets and determine asset values. It also details how assets for the fund are held in segregated wallet addresses on the Bitcoin blockchain. It also noted that ETF assets are “not commingled” with corporate or other customer assets.

The SEC previously criticized spot Bitcoin ETF applications for insufficient surveillance-sharing agreements (SSAs). In response, ARK Invest and 21Shares included an SSA in an amended application filed in June.

The agreement was a joint effort of ARK Invest, 21 Shares, the Chicago Board Options Exchange (CBOE) BZX Exchange, and a crypto platform. The filing didn’t specify the crypto platform though.

It, however, asserted that the platform accounted for a “substantial portion of US-based Bitcoin trading.”

Addressing SEC’s concerns

Eric Balchunas, a senior Bloomberg ETF analyst, noted that it’s very possible that the latest ETF application addressed all the concerns of the SEC.

He also referred to a section where the application underlined that certain valuation methods that the aforementioned ETF used were not in line with generally accepted accounting principles (GAAP) in the U.S.

Balchunas remarked that with this application, ARK Invest and 21Shares has put the ball back in the SEC’s court. It’s possible there will be a few “back and forths” between the applicants and the regulator over these details.

Scott Johnsson, General Partner and General Counsel at Van Buren Capital, was quick to respond to the above thread. He highlighted the mentions of risk factors affecting the fund in the amended application, viz., regarding illicit transactions, and negative environmental effects of crypto mining.

Notably, ARK Invest and 21Shares first filed for a joint spot BTC ETF in 2021. Since then, the SEC has time and again denied all of its applications.


Saman is a News Editor at AMBCrypto. Her background in History and English expanded on her knack for editing and presenting all sides of a story without bias. With a strong will to learn, Saman is always up for exploring unknown territory, and crypto, with its ever-changing landscape, offers just that.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.