ARK Invest Files for Bitcoin ETF Again Following the Primary Filing Rejection

Vignesh Karunanidhi
ARK Invest Files for Bitcoin ETF Again Following the Primary Filing Rejection
Source: Financial Times

Following the SEC’s rejection of the primary filing by ARK Invest for Bitcoin ETF, the investment management firm is giving another shot at it. ARK Invest primarily filed for the same in April with the US Securities and Exchange Commission. The application was outright rejected by the SEC.

ARK Invest is an investment management firm founded by Cathie Wood. The firm is giving another shot at it with its second filing. ARK Invest had also partnered up with ETF issuer 21Shares. The partnership was to file for a spot Bitcoin ETF in June 2021.

The recent SEC filing also includes a change from the Chicago Board Options Exchange to the BZX Exchange. The latest deadline for the ARK 21Shares Bitcoin ETF, according to Bloomberg ETF expert Henry Jim, is January 24, 2023.

Source: Blockworks

Will ARK Invest turn out to be lucky the second time?

The initial application filed in April would have initiated the ARK Invest’s ETF to trade on the Chicago Board Options Exchange and 21 shares holding the position as the sponsor.

ETFs (exchange-traded funds) are investment products that are linked to commodities, currencies, stocks, or bonds.

The value of shares in the Bitcoin spot ETFs that firms have been trying to register would be related to the price of Bitcoin. It would enable investors to engage in crypto markets without acquiring and selling Bitcoin directly.

The Securities and Exchange Commission has been stern with its opinion that before approving a spot ETF, better measures to protect investors have to be implemented. Nevertheless, the firm seems quite confident with this filing, and it will turn out to be a surprise if the SEC approves it this time.

Cathie Wood’s ARK also holds over 7 million shares in Grayscale Bitcoin Trust, as reported by the Markets Insider. ARK controls over $19.4 billion AUM and is continuously improving its holdings in the trust. The GBT also holds over 649,130 bitcoins with $18.9 billion AUM.