Understanding the Potential of Web 3.0 and ARK’s Bitcoin ETF Filing

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.”

When looking at the history of the internet, Web 1.0, 2.0 and 3.0 have all been revolutionary in their own right. Web 1.0 was the initial version of the internet, Web 2.0 was the era of social media and Web 3.0 is the current version of the internet, which is focused on decentralization and automation. Investing in Web 3.0 has become increasingly popular, and it is important to understand the differences between Web 2.0 and Web 3.0 in order to make informed decisions about investments.

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.”

If you are interested in investing in Web 3.0, there are a few things you should know. First, it is important to understand the history of Web 1.0, 2.0, and 3.0. Then, you can learn how to become a Web 3.0 developer. Additionally, you can find out how Web 3.0 works differently than Web 2.0 and how to invest in it.

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