ARK 21Shares Bitcoin ETF - Another Attempt at a bitcoin etf approval

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ARK 21Shares Bitcoin ETF - Another Attempt at a bitcoin etf approval

In Brief

  • Earlier this year, ARK and 21Shares submitted a Bitcoin ETF proposal to the SEC which was rejected.

  • They are now making another attempt with a slightly different proposal, which if approved, would allow for the exchange-traded fund to be listed on Cboe BZX Exchange.

  • The SEC has until July 9 to make a decision.

It looks like Cathie Wood’s Ark and 21Shares are trying once again to get a bitcoin ETF listed on the NYSE.

In seeking to achieve its investment objective, the trust will hold Bitcoin and will value the shares daily based on the index, the application reads.

After a long wait, Chicago Board Options Exchange (CBOE) filed the proposed rule change on May 13 of this year and the document was published to the federal register yesterday, meaning we can expect an announcement soon.

Previously, the SEC issued multiple extensions for rule change proposals linked to spot bitcoin ETFs, but none have yet gained approval. One was a joint submission from the issuer of ARK ETF offering and 21Shares as the sponsor of the trust. The SEC rejected it in April this year.

The Commission is currently asking for feedback on the proposed rule change.

The SEC has rejected bitcoin ETFs in the past because there aren't enough surveillance agreements to monitor the asset in a market of significant size. However, the SEC has approved futures-based bitcoin ETFs. Some people argue that this undercuts the argument against spot products.

They reason that even though a futures product is traded on an exchange with surveillance agreements, the price is still set by the unregulated bitcoin spot market.

The latest CBOE rule proposal also makes the argument that crypto is too volatile to be considered an asset class.

The proposal said that both the Exchange and the Sponsor believe that the CME Bitcoin Futures market is a regulated market of significant size. They also think that the proposal should be approved.

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