ARK Investment Management Leads the Race for Bitcoin ETF Approval
ARK Investment Management, the firm founded by veteran investor Cathie Wood that is pro-Bitcoin (BTC), is apparently in the lead for receiving approval for a Bitcoin exchange-traded fund.
In mid-June, the investment company BlackRock submitted a request for a Bitcoin ETF, which caused notable enthusiasm in the cryptocurrency markets.
Some executives and analysts have suggested that BlackRock may not be the first issuer of a spot Bitcoin ETF in the United States, despite reports to the contrary. If approved, this could still be the case.
“According to ARK analyst Yassine Elmandjra, other applicants can easily modify their filings with comparable arrangements at a low expense.”
Elmandjra highlighted that ARK and 21Shares, a European asset manager, submitted a request to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF in April. He further noted that this was the only application ahead of BlackRock’s.
Industry observers such as Bloomberg Intelligence ETF analyst James Seyffart have also suggested that ARK and 21Shares should be among the first to be approved for a Bitcoin ETF.
“21Shares, ARK and Cboe are leading the pack since their SEC ruling is due on August 13th, 2023, while we don’t have a date for the other 19b-4 applications, such as BlackRock’s,” Seyffart noted.
Industry Observers Optimistic About Bitcoin ETF Approval
The submission of BlackRock’s iShares Bitcoin Trust has prompted a resurgence of Bitcoin ETF applications. Companies such as crypto fund manager Valkyrie, WisdomTree, and Invesco have all refiled for Bitcoin ETFs, while Bitwise is apparently attempting to obtain a BTC ETF once more.
“Our optimistic outlook for the possibility of a spot Bitcoin ETF being approved can be succinctly expressed in four words: ‘What does BlackRock know?’,” Eric Balchunas, a senior ETF analyst for Bloomberg, tweeted. Nate Geraci, co-founder of the ETF Institute, also shared similar thoughts on Twitter on June 26.
Industry watchers have pointed to the timing of BlackRock’s application for a Bitcoin ETF, with some speculating that the company may have inside knowledge of the SEC’s Bitcoin ETF regulations.
Experts Doubtful of Bitcoin ETF Approval in 2023
Despite the increasing optimism that a Bitcoin ETF may soon be available in the U.S., many experts think it is unlikely to happen in the near future.
It is improbable that the Securities and Exchange Commission will authorize a Bitcoin exchange-traded fund in 2023, according to Wade Guenther, partner at Wilshire Phoenix, as not much progress has been made since the Winklevoss twins filed for one in 2017, as reported to Cointelegraph.
A renewed interest in Bitcoin ETFs has been seen, with ProShares’ BITO experiencing its largest influx of money in a year.
“It has been quite some time since many of these sponsors first submitted their proposals for a Bitcoin ETF,” Guenther noted, “and yet there has been little progress since then.”
Geraci, a co-founder of the ETF Institute, previously forecasted that the world would not witness a Bitcoin ETF by 2023.
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