Cathie Wood’s ARK’s Bitcoin ETF, known as ARK 21Shares, is among the numerous proposals submitted to the US Securities and Exchange Commission (SEC). This product was created in partnership with the Swiss firm 21Shares, a provider of crypto exchange-traded products.
ARK21’s deadline today has raised confidence in a potential ETF announcement tonight. This expectation is based on the SEC’s historical pattern of approving all ETFs simultaneously. QCP Capital suggests that the chances of an announcement tonight are high. The ARK 21Shares Bitcoin ETF filed Form 8-A with the SEC on January 4th to register its shares as securities listed on the Cboe BZX Exchange. The SEC’s upcoming meeting, scheduled for January 11, is the day following the deadline for approving or denying Ark and 21Shares’ proposal.
Despite numerous pending applications, the securities regulator has not approved a spot Bitcoin ETF to be listed on a US exchange. Last January, the SEC rejected the proposal to list the ARK 21Shares Bitcoin ETF on Cboe BZX, citing insufficient measures in the application to prevent fraudulent and manipulative acts.
In August 2023, Grayscale Investments secured a win against the SEC from US Court of Appeals Circuit Judge Neomi Rao to reconsider its spot Bitcoin ETF application, leading to the reversal of the commission’s decision to deny the GBTC listing application. This move prompted a comprehensive review of all pending spot Bitcoin ETF applications. If ARK 21Shares’ application receives approval, the spot Bitcoin ETF will be listed with a fee of 0.21%, indicating a reduction of four basis points from the originally proposed number on Tuesday.
This reduction comes after Ark Investment Management LLC reduced fees, intensifying the competition among issuers aiming to enhance the appeal of their products to investors in anticipation of a regulator’s decision on their fate.
While SEC meetings, whether open or closed, are publicly disclosed, Chair Gary Gensler might choose a seriatim vote for Bitcoin ETF applications. This approach enables collecting votes without publicly convening a meeting. The SEC explains the process as, “Matters are often voted “by seriatim,” which means that these matters are being circulated to each Commissioner’s office in turn, Commissioner-by-Commissioner, for his or her vote. The Chair typically votes last, but given that the Chair decides whether to circulate a seriatim in the first instance, it is reasonable to assume the Chair will approve it.”
The agency has occasionally refrained from voting on crypto ETFs, opting instead to delegate authority to staff, a process designed by the SEC to conserve Commission resources. SEC Commissioner Hester Peirce had previously mentioned that many initial denials of Bitcoin exchange-traded products were issued by the staff under authority delegated from the Commission.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇨🇭 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Cathie Wood, Neomi Rao, Hester Peirce, Gary Gensler |
| Companies | Grayscale Investments, US Securities and Exchange Commission, Binance Futures, Swiss firm 21Shares, QCP Capital, Ark Investment Management LLC, Cboe BZX Exchange |
| Currencies | Bitcoin |
| Securities | Cboe BZX Exchange, ARK 21Shares Bitcoin ETF, GBTC |
