ARK 21 and Bitcoin ETF Ushers in New Crypto Investment Era

Last updated: January 4, 2024 10:23 PM

Published January 4, 2024 10:23 PM

Last updated: January 4, 2024 10:23 PM

Published January 4, 2024 10:23 PM

ARK Investment Management, led by Cathie Wood and 21Shares, has embraced the ARK 21Shares Bitcoin ETF focused on trading and exchange. They have recently registered this fund with the U.S. Securities and Exchange Commission.

This fund focuses on Bitcoin. To facilitate this, they used Form 8-A for the filing process. Their goal is to have the fund’s shares listed on the Cboe BZX Exchange, a milestone they achieved on January 4.

This action is not remote in the financial sector. However, two other entities, the VanEck Bitcoin Trust and Grayscale Bitcoin Trust. They utilized Form 8-A to register their shares as securities.

These were listed on the Cboe BZX Exchange and the New York Stock Exchange Arca. Furthermore, the Cboe BZX Exchange had agreed to register Fidelity’s spot Bitcoin ETF.

The SEC has set a deadline of January 10 to decide on the ARK Invest and 21Shares Bitcoin ETF. Historically, the SEC has hesitated to approve spot Bitcoin ETFs for U.S. exchange listings, with numerous pending applications. For instance, in January 2023, the SEC turned down ARK 21Shares’ Bitcoin ETF listing on the Cboe BZX, citing concerns over inadequate safeguards against fraud and manipulation.

However, the view experienced a shift in August 2023. U.S. Court of Appeals Judge Neomi Rao ruled in favor of Grayscale Investments, allowing its spot Bitcoin ETF application to be reviewed anew.

This ruling vacated the SEC’s earlier decision to deny the GBTC listing application. This development has led to a regulatory reassessment of all existing spot Bitcoin ETF applications.

Upon receiving approval, the ARK 21Shares Bitcoin ETF intends to charge an annual management fee of 0.80%. This fee covers operational costs, such as marketing and listing expenses.

The step by ARK Invest and its partners to integrate cryptocurrency into conventional financial instruments through this ETF represents a development. It potentially sets the stage for wider recognition and incorporation of digital assets into investment portfolios, marking a step in the mainstream acceptance of cryptocurrency.