ARK Invest and 21Shares’ recent amendments to their joint Spot Bitcoin (BTC) exchange-traded fund (ETF) application could be seen as a “good sign” of progress and approval approaching.
Revised version of October 11th filing It will be filed with the U.S. Securities and Exchange Commission for approval and will add additional information about the proposed Spot Bitcoin ETF, including practices regarding how the fund will store its assets and determine asset values.
Eric Balchunas, senior ETF analyst at Bloomberg, said the changes could be a direct response to concerns the SEC is asking ETF issuers to address.
“So ARK received the SEC’s comments, addressed all of them, and now [the] the ball comes back [the] It’s the SEC courtroom,” Balciunas said. “[In my opinion] Good sign, solid progress. ”
The new S-1 has five additional pages, but new content is sprinkled throughout, as seen in the two examples above. So what does this mean? This means ARK received the SEC’s comments, addressed them all, and put the ball back in the SEC’s court. IMO a good sign, steady progress.
— Eric Balchunas (@EricBalchunas) October 11, 2023
Balciunas said the changes are “sprinkled throughout” so the new application is five pages longer and includes additional content. post “None of the comments were new or insurmountable.”
Balchunas said the changes also included ARK noting that the fund’s net asset value (NAV) calculation did not comply with Generally Accepted Accounting Principles (GAAP), the accounting standard used by the SEC. It is said to have been included.
The new filing also reveals that the ETF assets held by Coinbase Custody are in “segregated accounts.” […] Therefore, it cannot be confused with corporate assets or other customer assets. ”
This is also new (and this is also what the SEC asked about): “The assets of a trust with a custodian are stored in a segregated account on the Bitcoin blockchain, commonly referred to as a ‘wallet’. Assets that are never mixed with businesses or other customers. ” pic.twitter.com/57TmnNi1lE
— Eric Balchunas (@EricBalchunas) October 11, 2023
James Seifert, ETF analyst at Bloomberg, also joins X post The latter change is an indication that ARK and others are communicating with the SEC about what regulators want to know.
“It bodes well for future IMO approval,” he added.
Related: Bitcoin ETF: Cryptocurrency’s $600 Billion Tipping Point
Scott Johnson, General Partner at Van Buren Capital, said if BTC is increasingly used for illicit purposes and Bitcoin mining is limited by its environmental impact, the value of the ETF will decline. It was pointed out that a new comment was added stating that there is a possibility of doing so.
I still laugh a little about this “power usage” risk factor. Ark didn’t bother with a consistent header summary or even a few short sentences. You know the discussions with the SEC were like, “Oh, good thing I called the SEC attorney. This is definitely important.” https://t.co/unIArFDKl8
— Scott Johnson (@SGJohnsson) October 12, 2023
Johnson said that based on ARK’s amendments, “it does not appear that the agency is erecting unnecessary hurdles through its disclosure review.”
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