- December 9, 2023
- Posted by: legaleseblogger
- Category: Related News
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The U.S. Securities and Exchange Commission’s Decision on Ark Investment’s Bitcoin ETF Application
The U.S. Securities and Exchange Commission (SEC) holds the fate of Ark Investment’s spot bitcoin (BTC) exchange-traded fund (ETF) application, with a decision deadline set for Jan. 10, 2024.
Ark Investment, based in Florida, is among the asset management firms awaiting the SEC’s verdict, with its application set to expire on the aforementioned date. The company submitted updated S-1 filings to the SEC on Dec. 2, 2023, as per recent records. Meanwhile, Grayscale, another firm with a similar BTC ETF application, has its final deadline on Jan. 1, 2024.
The SEC had initially delayed the decision on spot BTC ETFs, citing the need for public input and expressing concerns over the vulnerabilities associated with such products. This came after the regulator had rejected multiple ETF applications. Subsequently, Gary Gensler and the SEC accelerated the decision date by a maximum of 240 days.
The prolonged uncertainty over the approval decision, which was pushed forward by the SEC in August, has prompted Cathie Wood, the founder of Ark Invest, to anticipate a positive outcome. Analysts at Bloomberg have placed the likelihood of the SEC approving spot ETFs at over 60%.
Ark Investment’s collaboration with 21Shares has led to the creation of the Ark21Shares Bitcoin ETF, which will track bitcoin’s performance using data from various crypto exchanges. The ETF is set to be listed on the Cboe BZX Exchange and will be measured by the S&P Bitcoin Index.
In a Wall Street Journal interview, Wood emphasized the significance of the SEC’s approval in providing a newfound legitimacy to spot bitcoin ETFs. She also expressed optimism about BTC’s future price, stating the potential for it to reach as high as $1 to $1.5 million.
Recent activity from Ark Investment includes the sale of approximately 102,672 Grayscale Bitcoin Trust (GBTC) shares, resulting in an acquisition of about $3.6 million. Furthermore, the firm sold over 200,000 COIN shares, its holdings in Coinbase stock, on Dec. 5. Despite these sales, GBTC remains the third-largest position in ARK Next Generation Internet ETF (ARKW), constituting approximately 8.36% of the ETF’s portfolio.
These sales reflect Ark Investment’s bullish sentiment, as the firm tends to accumulate shares during market downturns and offload them during uptrends.
With BTC’s price experiencing an upward trend in the final quarter of 2023, the cryptocurrency was trading at $43,924 at the time of writing, marking a more than 16% increase from its value a month prior.
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