According to Cathie Wood, the SEC’s decision to reject the ARK Invest Spot Bitcoin ETF “makes no sense,” as she put it a month ago.
Cathie Wood’s business, ARK Investment Management, has applied for a new Bitcoin (BTC) exchange-traded fund (ETF) called ARK 21Shares Bitcoin ETF. There is a deadline of January 24, 2023, for the SEC’s decision.
ARK Invest’s most recent application includes a suggested rule change from the Chicago Board Options Exchange (CBOE) BZX Exchange, according to a filing with the Securities and Exchange Commission.
For the ARK 21Shares Bitcoin ETF, the primary goal is to mirror the S&P Bitcoin Index’s performance. It was noted in the applications that,
To meet its investment purpose, the Trust will hold bitcoin, and the Shares will be valued daily using the Index. ” In-kind transactions with approved participants will be handled by the Trust for all creates and redemptions. “The Trust is not actively supervised.”
SEC has yet to approve any Bitcoin ETF that tracks the price of cryptocurrencies in the spot market, despite several physical Bitcoin ETF applications.
A tangible Bitcoin ETF is ARK’s second application. Comes only a few weeks after the Commission turned down the investment firm’s initial bid. After the rejection, Wood said that the company will apply again, and he added, “We’ll see what happens.”
They have authorised the Bitcoin futures, but not the underlying, which is exciting to me. With the high costs involved with such an ETF, it simply doesn’t make sense to me.”
Grayscale, one of the largest asset managers in the world, has also been pushing for a spot bitcoin ETF to be authorised, but they have yet to achieve their goal.
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