The U.S. Securities and Exchange Commission (SEC) is vying for the coveted approval of a spot Bitcoin exchange-traded fund, and competition is intensifying. According to Blockchain Association’s chief policy officer, Jake Chervinsky, “all signs point towards SEC approval for bitcoin spot ETFs.”
ARK’s ETF filing updates
Recent articles by Eric Balchunas claim that ARK Investment Management has significantly updated the prospectus for their spot Bitcoin ETF. A few weeks earlier, the SEC had provided input on numerous issuers’ S-1 filings, leading to modifications. These issues seem to have been resolved by ARK, especially with regard to the Net Asset Value (NAV) estimates that the SEC had raised.
The new prospectus specifically notes that the NAV calculation does not adhere to GAAP (Generally Accepted Accounting Principles). Additionally, ARK has said that the Trust’s assets are kept separate from corporate or other client assets by being kept in segregated Bitcoin blockchain accounts, or “wallets,” with its Custodian.
Although Balchunas emphasised that these changes are considered as a start in the right direction towards SEC clearance, more conversations with the SEC may be necessary to address these complex matters.
Surging ETF odds
The recent court decision in favour of Grayscale against the SEC has increased hope for the establishment of a spot Bitcoin ETF; experts expect it to happen 75% this year and 95% by the end of 2024.
The world’s largest asset management, BlackRock, along with other financial behemoths like Fidelity, WisdomTree, VanEck, and Invesco/Galaxy are all promoting their different ETFs and demonstrating the fierce rivalry in this market.
However, prudence is still advised because the SEC still has the authority to postpone its choice, particularly in light of how recently Grayscale’s court victory occurred.
