ARK & 21Shares Revive Spot Bitcoin ETF Application: Get Ready For Crypto Exposure
• ARK Investment and 21Shares are making a third attempt to apply to offer a spot Bitcoin exchange-traded fund (ETF).
• The application is expected to be listed and traded on the Cboe BZX Exchange.
• The SEC has rejected previous attempts, citing fraud and manipulation in the industry as reasons.
Companies Revive Spot Bitcoin ETF Application
Cathie Wood’s investment management firm ARK Investment in collaboration with crypto exchange-traded product provider 21Shares is making a third attempt to apply for a spot Bitcoin exchange-traded fund (ETF) after two rejections from the US Securities and Exchange Commission (SEC). The proposed ETF will be listed and traded on the Cboe BZX Exchange.
Previous Applications Rejected by SEC
Both companies first applied for the spot Bitcoin ETF in 2021 and again in May 2022, both of which were rejected by the SEC. To date, no spot Bitcoin ETF application has been approved by the regulator due to its concerns of fraud and manipulation in the industry. Instead, they have favored Bitcoin futures ETF applications.
The ARK 21Shares proposal argued that investors looking to access crypto exposure would be exposed to significant risks without a spot Bitcoin ETF. 21Shares CEO Hany Rashwan noted that “access needs to be done in a regulatory friendly way, it needs to be done in a safe and accessible way“, adding that „the absence of a spot Bitcoin ETF removes significant investor protections“.
Other Countries Have Approved Spot BTC ETFs
Despite this lack of approval from American regulators, countries like Canada and Brazil have seen success with their own applications for spot Bitcoin ETFs. As such, there have been calls from stakeholders for the SEC to enable such products for investors in the United States. Grayscale Investments is currently engaged in legal action with the regulator after its own proposal was rejected earlier this year.
ARK Investment and 21Shares‘ latest attempt at offering a spot Bitcoin ETF could prove successful if approved by US regulators. If successful, it would open up more secure access methods for investors looking to get involved with cryptocurrency markets while also providing improved protection against fraud or manipulation