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Bitcoin ETF: Analysts highlight positive indicators in ARK’s revised application



Bloomberg’s ETF analysts suggest that ARK Invest and 21Shares’ updated filing may indicate progress toward a spot Bitcoin ETF, addressing the SEC’s previous concerns.

On October 11, the United States Securities and Exchange Commission received a revised submission seeking approval for a spot Bitcoin ETF. This updated filing incorporates additional details concerning the fund’s procedures for safeguarding assets and calculating asset valuations.

Eric Balchunas, Bloomberg’s senior ETF analyst, believes that the changes in the ETF filing might be a result of the SEC raising specific concerns with other issuers of spot Bitcoin ETFs.

“It means ARK got the SEC’s comments and has dealt with them all, and now put [the] ball back in [the] SEC’s court,” Balchunas said. “[In my opinion] a good sign, solid progress.”

Balchunas stated that the updated filing included additional information throughout, increasing its length by five pages, and the added information didn’t introduce new, major challenges.

Per Balchunas, ARK has pointed out that the fund’s calculations of its net asset value (NAV) do not adhere to the Generally Accepted Accounting Principles (GAAP), which is a standard accounting practice mandated by the SEC.

The updated filing provides more information about Coinbase Custody holding the proposed ETF’s assets in “segregated accounts […] and, therefore, not commingled with corporate or other customer assets.”

Furthermore, James Seyffart, a Bloomberg ETF analyst, believes that the addition of further details about the assets in the new filing indicates that ARK is responding to requests from the SEC to clarify certain aspects of the proposed ETF.

“A good sign for future approval IMO,” he added.

According to Scott Johnsson, a general partner at Van Buren Capital, a new element in the filing is a warning that if Bitcoin becomes increasingly associated with illegal activities or if its environmental impact results in restrictions on its mining, then the ETF’s value might suffer.

Johnsson added, based on ARK’s amendments, it “doesn’t look like the agency is putting up any unnecessary roadblocks via disclosure review.”


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