In the pursuit of launching a spot Bitcoin exchange-traded fund (ETF) in the United States, ARK Investment Management has made amendments to its application, bringing it in line with BlackRock’s recent filing. The updated application includes a surveillance sharing agreement between ARK Invest and the Chicago Mercantile Exchange (CME) futures markets, with the likelihood of partnering with Coinbase, a prominent cryptocurrency exchange.
ARK Invest, led by Cathie Wood, and European asset manager 21Shares have resubmitted their BTC ETF application for the third time after facing rejections in 2021 and 2022 due to non-compliance with the regulations and requirements set by the U.S. Securities and Exchange Commission (SEC).
According to James Seyffart, an ETF analyst at Bloomberg Intelligence, ARK’s revised application positions them as the frontrunner for a Bitcoin ETF. With the next SEC decision date set for August 13, 2023, ARK, 21Shares, and the Chicago Board Options Exchange (Cboe) are currently at the forefront, while the timing for other applications, such as BlackRock’s, remains uncertain.
However, even if ARK Invest receives approval in the coming weeks, there are still additional steps to be taken. One crucial requirement is to enter into a surveillance sharing agreement with a crypto exchange. While Coinbase appears to be a strong candidate for this partnership, it is already working with BlackRock as a potential Bitcoin custodian in the event of approval.
There is speculation about whether BlackRock would allow Coinbase to form a surveillance sharing agreement with another issuer that could potentially beat them to market. If not, ARK would need to seek a different crypto exchange for this purpose.
BlackRock’s entry into the Bitcoin ETF race on June 16 has spurred similar initiatives from other financial investment firms, including Valkyrie, WisdomTree, and Invesco, which have recently re-filed their applications for spot Bitcoin ETFs.
ARK Invest Takes Lead in Bitcoin ETF Race with Surveillance Agreement
ARK Invest’s amended application, with the inclusion of a surveillance sharing agreement, strengthens its position in the competition to launch the first Bitcoin ETF in the United States. The race is still ongoing, and while ARK may be leading at present, the ultimate outcome remains uncertain.