Asset manager ARK Invest and cryptocurrency ETP 21Shares have submitted a joint application to launch an exchange-traded fund (ETF) based on the first cryptocurrency.
According to the document, the financial instrument is planned to be listed on the Cboe BZX exchange under the ticker ARKB.
The bitcoin ETF's share price will mirror the dynamics of the S&P BTC index. The latter is based on data from Binance, Bitfinex, Bitflyer, Bittrex, Bitstamp, Coinbase Pro, Gemini, HitBTC, Huobi, Kraken, KuCoin and Poloniex, which form a single price based on "a combination of qualitative and quantitative indicators".
Coinbase will act as custodian, with Bank of New York Mellon as administrator and transfer agent.
Analyst Eric Balchunas said in an interview with Bloomberg that if approved, 21Shares with $1bn in assets could enter the US market.
Led by bitcoin supporter Katie Wood, ARK Invest owns shares in Grayscale's first cryptocurrency and Ethereum-based products, as well as Coinbase securities. Wood is also a board member of 21Shares.
Earlier in an interview with Bloomberg, the CEO of ARK Invest said the chances of bitcoin-ETF approval increased after the May correction.
Recall that in June, the SEC extended its review of Valkyrie Digital Assets' application to launch an exchange-traded fund based on the first cryptocurrency.
Earlier, the regulator had repeatedly postponed its review of VanEck's application to launch a bitcoin-ETF.
Prior to that, the SEC issued a similar ruling for Kryptoin Investment Advisor as well as WisdomTree.