CEO of ’s Ark Invest Cathie Wood, yesterday filed for a bitcoin exchange-traded fund (ETF) alongside Swiss-based 21Shares for a proposed Exchange-traded fund (ETF)
ARK Invest has teamed up with 21Shares to submit a joint application to the Securities and Exchange Commission (SEC) for approval of a proposed Exchange-traded fund.
The token would be listed on the Chicago Board Options Exchange BZX if approved, according to the Monday filing, which is comparable to the rest of the ETF proposals that the SEC has yet to decide on.
The planned ETF, dubbed ARK 21Shares Bitcoin ETF, will be principally sponsored by 21 Shares, with ARK Invest assisting in the marketing of shares.
The plan is to use the S&P Dow Jones Indices Bitcoin index to determine the daily value of shares and so provide bitcoin exposure.
Coinbase would be the official custodian for the ETF’s digital coin, according to the S-1 form requesting registration of securities through which the application was lodged.
BNY Mellon would also provide administrative and financial services in addition to facilitating the issuing and redemption of shares.
Cathie Woods, the founder and CEO of ARK Invest, continues to expand the company’s influence in the crypto market, the firm also owns $250 million worth of shares in the Grayscale Bitcoin Trust.
Woods is not only a powerful investor in the crypto industry, but he is also a big proponent of bitcoin, predicting not long ago that the cryptocurrency would overcome its recent collapse and surpass $500,000 at some time.
21Shares, where Cathie Woods is a board member, has over $1 billion in crypto assets under control, according to CoinShares.
ETF expert Eric Balchunas believes that if the proposed ETF is approved, 21 Shares would be able to quickly integrate into the American crypto space.
The combined application will be closely monitored as it joins the ranks of other ETF applications that the SEC has rejected or for which it has requested a longer period of review.
The SEC postponed a decision on VanEck’s proposed ETF again again in mid-month. In response to the delay, CEO Jan van Eck stated that investors want rapid clearance and that the demand for ETFs will ensure that approval is granted as soon as possible.
Last Monday, the SEC also announced that Valkyrie would be given another extension and would have to wait another 45 days for a ruling from the SEC.
The SEC’s approach toward digital assets has been hostile, and the situation is made more complicated by the fact that Gary Gensler, the current chair, is widely seen to be pro-crypto.
