The company reintroduced the application for the ‘ARK 21Shares’ Bitcoin ETF, which was rejected by US regulators in early April.
- Ark Invest and 21Shares initially applied in June 2021.
- Despite the rejection of the SEC, the companies insist on the Bitcoin ETF.
- The SEC must respond before the end of January 2023.
The reluctance of US regulators to approve an exchange-traded fund (ETF) of Bitcoin cash has not discouraged some companies that still insist on the arrival of the first product of its kind.
ARK Investment Managementthe fund management company founded by veteran investor and enthusiast Bitcoin Cathi Woodhas resubmitted an application for an ETF of Bitcoin before the Securities and Exchange Commission (SEC) of the United States.
As reported by the news outlet Cointelegraph, Ark Investment reapplied this month for its ETF from Bitcoin cash (also called spot or physical) in conjunction with the Swiss company 21 Shares AG. The communication agency cited a public document filed with the SEC on May 13, 2022.
There is still hope for a physical Bitcoin ETF
By all accounts, the request appears to be the same one previously submitted by the companies at the end of June last year; although includes a rule change proposed by the Chicago Board Options Exchange (CBOE) BZX Exchange, according to the report.
Called “ARK 21Shares Bitcoin ETF“, the intention of the product is to give investors exposure to the main cryptocurrency. To do this, the ETF will track the price of Bitcoinaccording to the performance of the S&P Bitcoin Index. “Seeking to achieve its investment goal, the trust will hold Bitcoin and value the shares daily based on the index”, reads the request.
The introduction of the application comes just a few weeks after the SEC rejected the ETF proposal from ARK Invest. as picked up DailyBitcoin the regulatory agency issued an official response to the request in early April. The rejection is part of the SEC’s broader denial of the possibility of an ETF Bitcoin physical.
Although the SEC last year approved the first ETFs linked to cryptocurrency futures, the regulator has remained reticent about such a product directly backed by a digital asset. On different occasions, SEC Chairman Gary Gensler has hinted that an ETF will not be greenlit. spot citing concerns about risks associated with crypto market volatility.
Meanwhile, a possible approval of an ETF of Bitcoin US spot continues to be one of the most anticipated events in the community; and multiple companies have requested investment vehicles of this type. Between them, grayscale has been trying to turn his popular fund of Bitcoin, GBTC, in a physical ETF; although, like the others, it has not been successful so far.
According to ETF analyst from BloombergHenry Jim, regulators will have to respond to the latest request for ARK Invest no later than about 9 months, since the deadline for a verdict is January 24, 2023.
Ark 21Shares decides to try again for a “Spot” Bitcoin ETF and files 19b-4 with SEC.
Deadline for approval / disapproval: Jan 24, 2023 (latest).
— ETF Hearsay by Henry Jim (@ETFhearsay) May 26, 2022
Article by Hannah Estefanía Pérez / DailyBitcoin
WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.