ARK Invest Strengthens Bitcoin ETF Application with Surveillance Agreement

ARK Investment Management Modifies ETF Application

ARK Investment Management has modified its application for a Bitcoin (BTC) exchange-traded fund (ETF) to the US Securities and Exchange Commission, making it comparable to BlackRock’s recent submission.

The amendments include a surveillance agreement that would allow for the sharing of data between the Chicago Mercantile Exchange (CME) futures markets and crypto exchange, likely Coinbase, according to Bloomberg ETF analyst Eric Balchunas on Twitter.

In the competition to be the first to launch a Bitcoin ETF in the United States, ARK’s recent filing puts it ahead of the other contenders.

In April, Cathie Wood’s investment firm and the European asset manager 21Shares made a third attempt to get approval for a Bitcoin exchange-traded fund (ETF). However, their previous applications had been declined in 2021 and 2022, with the regulator citing that the product did not comply with the Exchange Act regulations and standards for listing a financial product.

In a recent interview, James Seyffart of Bloomberg Intelligence ETF declared ARK’s petition to be the frontrunner for a Bitcoin ETF. He stated, “21Shares, ARK and Cboe [Chicago Board Options Exchange] are first in line because their next SEC decision date is August 13, 2023, and we don’t have a date for the other 19b-4 applications, such as BlackRock’s.”

Competition Heats Up Among Bitcoin ETF Applicants

Even if the ARK ETF is approved in the near future, the story of the Bitcoin ETF may not be finished yet, as it will still require a cryptocurrency exchange to enter into a surveillance-sharing agreement. Coinbase could be a likely contender for this role, yet the organization has already joined forces with BlackRock to become a Bitcoin custodian if and when the approval is given.

“Would BlackRock permit Coinbase to enter into a SSE agreement with another, thus enabling another issuer to outpace them in the market? If so, ARK would have to find another crypto exchange to use,” Balchunas further commented on Twitter.

On June 16, BlackRock became the latest entrant in the queue of applicants, prompting a similar response from other Wall Street firms, particularly those who had already applied. In recent days, financial investment companies like Valkyrie, WisdomTree and Invesco have resubmitted applications for a Bitcoin ETF.

Cointelegraph attempted to contact ARK Invest but did not receive an immediate reply.

Bitcoin appears to be heading towards its goal of achieving ‘Net Zero’ promises.