ARK’s amended spot Bitcoin ETF filing is a ‘good sign’ of future approval

History of Web 1.0, 2.0 and 3.0

An amendment to ARK Invest and 21Shares’ joint spot Bitcoin (BTC) exchange-traded fund (ETF) application could be seen as a positive indication of progress and potential approval. The Oct. 11 filing to the United States Securities and Exchange Commission was updated to include additional details about the proposed spot Bitcoin ETF, such as practices for asset custody and asset value determination.

Eric Balchunas, a senior ETF analyst at Bloomberg, said the changes may have been made in response to questions previously raised by the SEC. He commented, “It appears that ARK has addressed all the SEC’s comments and now the ball is back in their court. In my opinion, this is a good sign and shows solid progress.”

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Investing in Web 3.0

Balchunas commented that the alterations are “scattered throughout”, making the new filing five pages longer, and he added that “none of the comments were that new or insurmountable.”

The modifications included ARK mentioning that the fund’s net asset value (NAV) computations are not in agreement with the Generally Accepted Accounting Principles (GAAP) — a standard utilized by the SEC, said Balchunas.

The updated filing also explains that the ETFs assets, kept in Coinbase Custody, are in “separate accounts […] and are therefore not intermingled with corporate or other customer assets.”

Fellow Bloomberg ETF analyst James Seyffart added in an X post that the latter change indicates that ARK and others are communicating with the SEC about what the regulator requires clarified.

Investing in Web 3.0

Scott Johnsson, General Partner at Van Buren Capital, commented that the recent addition of a comment regarding the potential fall of the ETF’s value if Bitcoin mining’s environmental impact causes it to be restricted was a “good sign for future approval”.

He also noted that, based on ARK’s amendments, it “doesn’t look like the agency is putting up any unnecessary roadblocks via disclosure review.”

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