ARK Invest and 21Shares amend filing for a spot Bitcoin ETF

ARK Invest has amended its joint filing with 21Shares заявку for the registration of a spot Bitcoin ETF. Bloomberg analyst Eric Balchunas saw this as a ‘good signal’.

There’s 5 extra pages in new S-1 but the new stuff is sprinkled throughout like the two above egs. So what does this mean? It means ARK got the SEC’s comments and has dealt with them all, and now put ball back in SEC’s court. IMO good sign, solid progress.

— Eric Balchunas (@EricBalchunas) October 11, 2023

In the new S-1 there are five additional pages, but the new material is sprinkled throughout… What does this mean? It means ARK received the SEC’s comments and has dealt with all of them, and now returns the ball to the regulator. In my view, a good sign, solid progress, — wrote him.

Separately, the specialist noted that none of the comments were particularly novel or comprehensive.

In the amended filing the company added, among other things, the asset custody methods and the process for determining net asset value (in accordance with GAAP).

The assets in custody at the custodian [Coinbase Custody] are held on separate accounts on the Bitcoin blockchain, typically called ‘wallets’, and therefore are not commingled with corporate or other clients’ assets,

Bloomberg analyst James Seyffart agreed with his colleagues’ conclusions. He also noted that the changes reflect what the Commission wanted to clarify.

A good sign for future approval, — the expert concluded.

Adding details stating that the ETF’s #Bitcoin will be held on an individual wallet and not commingled. This all signals to us that Ark/21Shares & likely others are talking with the SEC about things they want cleared up in these docs. Good sign for future approval IMO https://t.co/0ZLLX4vK0w

— James Seyffart (@JSeyff) October 11, 2023

Van Buren Capital’s general partner Scott Johnson noted that the amendments also contain a comment about the risks of a decline in ETF value.

Specifically, regulators could impose limits on Bitcoin use due to the environmental impact of mining. Another factor could be an uptick in use of digital gold for illicit purposes.

Based on ARK’s amendments, it does not seem the agency is creating any unnecessary obstacles in reviewing the disclosures, — the expert explained.

Still chuckling a bit at this “electricity usage” risk factor. Ark couldn’t even be bothered to put in a coherent header summary or more than a couple short sentences. You know the convo w/ the SEC was like “oh yea, good call Mr. SEC attorney, this is definitely material /s” https://t.co/unIArFDKl8

— Scott Johnsson (@SGJohnsson) October 12, 2023

As noted, former BlackRock director Steven Shonfield suggested the agency would approve the instrument within three to six months.

Remarks in April suggested that the agency might approve the instrument within a similar timeframe.