SEC to approve or deny Cathie Wood’s Bitcoin ETF tomorrow
The U.S. Securities and Exchange Commission (SEC) is scheduled to announce its decision on ARK’s application for a bitcoin exchange-traded fund (ETF) by August 13. However, ETF analyst James Seyffart predicts that the decision regarding the ARK 21Shares Bitcoin ETF will likely be released by the end of August 12, a day before the official deadline, which falls on a Sunday.
Seyffart believes that the decision to give a thumbs up or thumbs down will probably be announced after the market closes, but he expects that a delay is a possible outcome. Cathie Wood, CEO of ARK Investment Management, previously suggested that her firm might be first in line to receive approval for a spot Bitcoin ETF. However, she has now changed her stance and mentioned that the SEC may approve multiple spot Bitcoin ETFs simultaneously.
Other applicants, including BlackRock, Bitwise, VanEck, and WisdomTree, have also filed applications for spot Bitcoin ETFs. ARK’s application was submitted on May 15, and the SEC designated August 13 as the deadline for approval or disapproval.
Although the SEC can extend the deadline to a maximum of 240 days, many argue that if one Bitcoin ETF is approved, all the applications should be approved to ensure fairness. This move could potentially generate significant demand, as the products collectively could attract more than $50 billion.
To be sure, a spot Bitcoin ETF does not currently exist in the U.S., and regulators have historically been cautious about approving such products. The success of the various applications will likely depend on the issuer’s marketing efforts, given the similarities among the proposed funds.
Despite being rejected twice previously, Cathie Wood’s Ark Invest amended its proposal for a spot Bitcoin exchange-traded fund (ETF) to include a Surveillance Sharing Agreement (SSA) with a Bitcoin spot trading operator.
This addition aims to enhance market surveillance and prevent fraudulent activities within the ETF, which was the reason cited by the SEC to reject all proposals to create a regulated Bitcoin derivative product.
By including the SSA, the ETF will have a mechanism in place to share surveillance information with a Bitcoin spot trading operator. This collaboration will enable real-time monitoring of trading activities to identify and deter market manipulation and other forms of fraudulent behavior.
The decision to incorporate this feature in the filing aligns with the approach taken by asset manager BlackRock in its proposal for a spot Bitcoin ETF.
Cathie Wood — a longtime bitcoin bull — has been buying up proxies for the crypto industry in relevant brands such as Grayscale Bitcoin Trust and exchange operator Coinbase.