Ark Invest’s Third Amendment to Bitcoin ETF Filing Signals Progress in SEC Approval Process

• Ark Invest has made a third amendment to its Bitcoin ETF filing, a move seen as a step forward in the SEC approval process.
• The amendment includes the disclosure of an 80 basis point fee and a commitment to a hybrid model for in-kind creations and redemptions.

Ark Invest’s Strategic Filing Update

Ark Invest, led by Cathie Wood, has made a significant move by amending its Bitcoin ETF filing for the third time. This surprising yet necessary change is seen as a positive development in the process of securing clearance from the Securities and Exchange Commission (SEC).

Transparency and Fee Structure

One of the most notable aspects of this amendment is the disclosure of a fee for the proposed ETF. The ARKB will charge an 80 basis point (bps) fee, marking Ark Invest as the first issuer to disclose such information. This move is crucial in adding transparency to the investment product, resonating with the growing demand for clear fee structures in the ETF industry.

Addressing SEC Concerns

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The amendment includes several updates, notably new risk disclosures. These additions appear to address specific concerns raised by the SEC’s Division of Corporation Finance (Corp Fin). The filing also shows a commitment to in-kind creations and redemptions in a hybrid model, a strategic decision aimed at minimizing tax implications and addressing potential spread issues.

SEC’s Delay in ETF Approvals

Bloomberg’s James Seyffart shed light on the SEC’s decision to delay approvals for spot Bitcoin ETFs. This delay is interpreted as a sign of the SEC’s thorough consideration process. The SEC’s preference for cash creates could influence broker-dealers, but the overall efficiency of this approach remains a point of optimism.

Timeline for SEC Decision

The ongoing comment period initiated by the SEC is expected to last at least 35 days, indicating that a final decision on spot Bitcoin ETFs, including those from other firms like Franklin Templeton and Global X, may be delayed further.

Outlook for Spot Bitcoin ETF Approval

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Despite these delays, the Bloomberg analysts maintain that the odds of a spot Bitcoin ETF approval stand at 90%. This optimistic view is anchored in the meticulous process undertaken by the SEC and the strategic adjustments made by Ark Invest and other applicants in their filings.

Conclusion: A Progressive Step in the ETF Landscape

Ark Invest’s latest amendment to its Bitcoin ETF filing represents a forward step in the complex approval process. The focus on transparency, risk disclosure, and strategic tax considerations aligns with the evolving expectations of both investors and regulators in the ETF space, paving the way for potential advancements in the cryptocurrency investment landscape.

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