ARK Invest Files for Bitcoin ETF After Rejection of Initial Filing

After the SEC’s rejection of ARK Invest’s initial filing for a Bitcoin ETF, the investment management business is trying again. The US Securities and Exchange Commission received ARK Invest’s application in April. The SEC rejected the application entirely.

Cathie Wood founded ARK Invest, an investment management firm. With its second filing, the business is taking another try at it. 21Shares, an ETF issuer, has also teamed up with ARK Invest. In June 2021, the partnership planned to file for a spot Bitcoin ETF.

According to a recent SEC filing, the Chicago Board of Options Exchange has been replaced by the BZX Exchange. As per Bloomberg ETF expert Henry Jim, the current deadline for the ARK 21Shares Bitcoin ETF is January 24, 2023.

The initial application, submitted in April, would have allowed the ARK Invest ETF to trade on the Chicago Board Options Exchange, with 21 shares serving as the sponsor.

ETFs (exchange-traded funds) are investment vehicles that track commodities, currencies, stocks, and bonds.

The price of Bitcoin would determine the value of shares in the Bitcoin spot ETFs the firms have been attempting to register. It would allow investors to participate in cryptocurrency markets without having to buy and sell Bitcoin directly.

The Securities and Exchange Commission has said emphatically that greater investor protection mechanisms must be implemented before authorizing a spot ETF. Nonetheless, the firm appears to be confident in this filing, and if the SEC approves it this time, it will be a surprise.

According to Markets Insider, Cathie Wood’s ARK owns approximately 7 million shares in Grayscale Bitcoin Trust. ARK has a total AUM of $19.4 billion and is steadily increasing its holdings in the trust. The GBT also has about 649,130 bitcoins with an AUM of $18.9 billion.

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