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Cathie Wood’s ARK likely to be the first to launch a Bitcoin ETF

Published

1 year ago

June 29, 2023

However, following BlackRock's recent application, a notable development appears to have sent an awakening ripple through the market. This move has prompted investment firms, which had previously filed similar applications, to reconsider their strategies, potentially aiming for replication.

Cathie Wood’s ARK Investments has filed for an amendment on their 19b-4 for spot bitcoin ETF with the U.S. Securities and Exchange Commission. The new move aims to include a surveillance-sharing agreement with CBOE Global Markets and a crypto exchange which is likely to be Coinbase.

The surveillance-sharing agreement is required to prevent market manipulation. Moreover, the amendment positions ARK to be approved by the SEC ahead of other applicants. ARK’s filing, which aligns with that of BlackRock, could become the first to launch a spot Bitcoin ETF in the United States.

ARK Invest is a global asset manager, founded by Catherin Duddy Wood (Cathie Wood) who also serves as the CEO of the firm.

Cathie Wood’s investment firm, a European asset manager, 21Shares, and WisdomTree, along with a few others, had previously applied for a spot BTC ETF, but their applications were denied.

However, following BlackRock’s recent application, a notable development appears to have sent an awakening ripple through the market.

This move has prompted investment firms, which had previously filed similar applications, to reconsider their strategies, potentially aiming for reapplication.

The U.S. SEC is also expected to make its decision on the ARK application by August 13, 2023, while applicants like BlackRock have no set date.

Further, as a necessity, ARK will have to choose a cryptocurrency exchange to sign a surveillance-sharing contract. While Coinbase is the most likely exchange, it has an ongoing collaboration with BlackRock.

The collaboration between BlackRock and Coinbase is such that the crypto exchange would serve as a Bitcoin custodian should the investment firm gain approval.

Financial investment firms reported to have filed again for a spot in Bitcoin ETF include Valkyrie and Invesco. Fidelity is also reportedly considering refiling for a spot Bitcoin ETF.