• ARK Invest Files Physical Bitcoin ETF Application

  • ARK Invest has applied to the Securities and Exchange Commission for a physical bitcoin exchange-traded fund (EFT).

    This is not the first physical bitcoin ETF to be considered by the SEC, with earlier applications by other organizations being denied.

    According to an SEC filing, ARK Investments has submitted another application for a physical bitcoin ETF. The ARK 21Shares Bitcoin ETF provides exposure to the spot price of bitcoin – no physical bitcoin ETFs have yet been approved by the SEC.

    Is this ARK’s second chance?

    This is not ARK’s first ETF application; earlier this year, the SEC rejected a spot bitcoin ETF. That decision was unsurprising, given that the SEC has been concerned about greater investor safety safeguards before authorizing a spot ETF. ARK Investments is clearly looking for greater fortune this time around.

    Given its previous reluctance, the SEC’s approval of this ETF will come as a surprise. Futures ETFs have fared far better, with many launching to great acclaim. ARK will be hoping that new ETF will help jumpstart what has been a difficult 2022 for the company.

    Other countries have permitted physical bitcoin investment products. In Zurich, Fidelity International has recently established a physical bitcoin ETP.

    The original Bitcoin ETFs were hailed when they were introduced, but there has been a drop in interest in the instrument since then. Investors, on the other hand, are anxious for a spot ETF, but it is unclear whether this will materialize anytime soon.

    Will a spot bitcoin ETF be allowed in 2022?

    Many companies, particularly Grayscale Investments, are fighting for the approval of a spot bitcoin ETF. There are some indications that additional discussion about this could be place this year, though not necessarily an approval. The SEC is not backing down from its demands for improved investor protection, which the market and policymakers should be able to devise together.

    With so much focus on the crypto industry, not to mention regulatory scrutiny, some analysts believe a spot ETF clearance might come as early as 2022. A number of large corporations have submitted applications.

    Other countries are more willing to approve ETFs. Australia and Canada have both given their approval to a few. It could take at least a year for the United States to approve a spot ETF, but hopefully sooner.

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