An updated fund prospectus from Valkyrie Investments and a new application from ARK Invest are "good signs" for SEC approval of the first bitcoin ETFs. This was the opinion of Bloomberg senior ETF analyst Erik Balchunas.
NOTABLE: Valkyrie just updated their bitcoin futures ETF prospectus (which typically only happens when ducks in row ready for launch). They added their ticker $BTF, altho no fee still. Can't say this is done deal type evidence but a good sign IMO.
ARK Invest has applied to the regulator to launch an exchange-traded fund based on Chicago Mercantile Exchange (CME) first cryptocurrency futures and has specified the ticker ARKA. Valkyrie has updated its prospectus for a similar product and claimed the exchange identifier BTF for it.
JUST IN: ARK just filed for a bitcoin futures ETF via 21Shares and via whiteAlpha Architect white label (huge win for them). Already has ticker too: $ARKA (yet another good sign SEC gonna approve)
According to Balchunas, firms usually update documents and assign a ticker when everything is ready to launch and an agreement with the SEC is close.
"People ask me what I look at first to confirm SEC approval. And these are exactly the kind of updated prospectus forms. At launch, they fill in all the missing boxes and add a ticker. However, this is bitcoin, so you can't be sure," said the expert.
ARK Invest amended its ARK Next Generation Internet ETF prospectus in September to include investments in Canadian cryptocurrency-based exchange-traded funds.
The firm's new filing does not refer to Canada or GBTC options, the fund invests only in futures, Balchunas said. According to his information, this is exactly what the SEC, led by Gary Gensler, is seeking.
At the beginning of August, Gensler stated that the agency is open to proposals to launch ETFs if they are based on CME bitcoin futures and comply with the Investment Company Act of 1940. He later reiterated this position of the regulator.
In October, the SEC approved an ETF based on a basket of bitcoin-related stocks from Volt Equity. Commenting on the Commission's positive decision, the firm's CEO Ted Park noted that most potential fund issuers did not consider Gensler's recommendations.
As a reminder, Canada was the first country in the world to approve a bitcoin-ETF in February 2021. Brazil followed suit a month later.
Bloomberg analysts earlier suggested that the SEC would register the first first cryptocurrency-based ETF by the end of October.
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