With the latest filing update, asset management firm ARK Investment Management owns Gained an advantage In the race to acquire the first Bitcoin Spot Exchange Traded Fund (ETF) in the US.
The company has amended its 19b-4 filing for a Bitcoin ETF to include an observational sharing agreement with the Chicago Board Options Exchange (CBOE) and cryptocurrency exchange, likely Coinbase, according By Bloomberg ETF Analyst Eric Balchonas.
The new agreement places the ARK deposit similar to BlackRock’s last deposit. It is likely to be approved since it was first filed in collaboration with institutional investment firm 21Shares.
Who will win the Bitcoin ETF race?
The Securities and Exchange Commission (SEC) previously cited concerns about a lack of regulatory oversight and oversight to reject previous Bitcoin ETF applications in the cryptocurrency market.
However, the agreement allows ARK to share monitoring information with the CME futures markets and cryptocurrency exchange, which can assist the SEC in its quest to mitigate fraud and manipulation in the cryptocurrency market.
According to Balchunas, the SEC’s decision is expected in August, and any delay could be a bad sign for approval unless the delay follows approval by BlackRock’s ETF, which could indicate “favoritism.”
On the other hand, Ophelia Snyder, co-founder of 21shares, has it answered To Bloomberg ETF Analyst Eric Balchunas’ tweet about ARK Invest’s new Watch Share Agreement with the cryptocurrency exchange.
Snyder explained that there is no incentive for a crypto exchange to enter into an SSA agreement with only one party, such as ARK Invest. These agreements aim to improve market transparency and linkages, which can be defeated if only one party is involved.
While ARK Invest’s new SSA with cryptocurrency exchange could help address some of these concerns, it remains to be seen if the agreement will be enough to convince the SEC to approve the company’s Bitcoin ETF application.
In addition, ARK may face challenges from competitors such as BlackRock, which may not allow Coinbase to enter into a watch-sharing agreement to help another issuer beat it in the market. ARK may need to find another crypto exchange if it encounters such challenges.
ARK’s enhanced monitoring measures could give it an edge in the Bitcoin ETF race, but the approval process remains uncertain.
Overall, the race to get the first Bitcoin ETF in the US is still very competitive, with many companies vying for approval. The outcome of the SEC’s decision, competitors’ actions, and the broader cryptocurrency industry will all play a significant role in determining which company will ultimately succeed in launching the first Bitcoin ETF in the United States.
Featured image from Unsplash, chart from TradingView.com