Ark Invest, led by Cathie Wood, confidently asserts that it is at the forefront of potentially receiving approval from the SEC for a spot Bitcoin Exchange Traded Fund (ETF). The optimism stems from BlackRock‘s recent application for a spot BTC ETF with the regulator, which has rekindled hope in the crypto industry. Consequently, many believe that if the regulator grants approval in the near future, BlackRock would be in the best position to receive it.
However, Bloomberg Intelligence ETF analyst James Seyffart argues that Ark Invest deserves approval more, pointing to their earlier application. Seyffart explained that entities such as 21Shares, ARK, and Cboe are ahead in line because their next SEC decision date is set for 8/13/23, while the dates for the other applications, including BlackRock‘s, are yet to be determined.
BlackRock, the world’s largest asset management firm, applied for a spot BTC ETF over a week ago. The firm intends to use the Coinbase custody platform. BNY Mellon is expected to act as the cash custodian for the ETF. The application was submitted when the SEC brought charges against Binance and Coinbase for allegedly violating U.S. securities law.
The BlackRock filing triggered a price rally in the overall crypto market. Given BlackRock‘s size, stature, and reputation, institutional investors began showing interest in crypto.
Consequently, several other investment management companies also filed for similar offerings. Some, like Valkyrie and WisdomTree, reapplied for a spot BTC ETF after their previous applications were denied. BlackRock may differentiate its filing from others by including a “unique” exchange surveillance-sharing agreement to prevent market manipulation.
