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Ark’s Amended Bitcoin ETF Filing Seen As ”Hugely Positive”

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Bitcoin ETF
Bitcoin ETF

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ARK Invest and 21Shares submitted an amendment to their spot Bitcoin exchange-traded fund (ETF) application that analysts say may nudge it closer to a landmark approval.

The amended application, filed on Oct. 11,  provides additional details that in particular focus on asset custody practices and asset valuation methods.

“It means ARK got the SEC’s comments and has dealt with them all, and now put ball back in SEC court,” tweeted Bloomberg Intelligence analyst Eric Balchunas, referring to the Securities and Exchange Commission by its initials. “IMO good sign, solid progress.”

ARK’s Bitcoin ETF Application Changes

The analyst said that the SEC emailed fund managers seeking to launch spot Bitcoin ETFs a few weeks ago with comments and questions that it wanted to be addressed.

A notable change brought forward in the latest amendment relates to how ARK would calculate its fund’s net asset value (NAV), which was not in line with the Generally Accepted Accounting Principles (GAAP) – a standard used by the SEC.

The new filing also clarifies that the ETF’s assets are held within segregated accounts by Coinbase Custody. Subsequently, ETF funds cannot be commingled with corporate or other customer assets, noted the analyst.

”Very possibly there will be a few back and forths with SEC on these small but imp details,” he said. “So I would not say approval imminent but I would say the fact that issuers are in a ‘back and forth’ w SEC on this is hugely positive.”

Pressure on the SEC to approve spot Bitcoin ETFs intensified after Grayscale Investments won a landmark court victory over the SEC, when a judge called the regulator’s decision to approve Bitcoin Futures ETFs, but not spot Bitcoin ETFs, ”arbitrary and capricious.”

Former BlackRock director Steven Schoenfield says spot Bitcoin ETFs may  be approved by as early as January, and that they may attract as much as $200 billion to Bitcoin investment products.

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