ARK Investment Management Advances in the Race for First Bitcoin ETF in the US!

ARK Investment Management, an asset management firm, has taken significant steps to position itself at the forefront of the race to launch the first Bitcoin Spot exchange-traded fund (ETF) in the United States. With its recent filing update, ARK has incorporated a surveillance sharing agreement with the Chicago Board Options Exchange (CBOE) and a crypto exchange, potentially Coinbase. #ArkInvest

This strategic move aligns ARK's filing with BlackRock's recent application, increasing the likelihood of approval since they filed first in collaboration with institutional investment firm 21Shares. Previous rejections by the Securities and Exchange Commission (SEC) have cited concerns over surveillance and regulatory oversight in the cryptocurrency market. #ETF #21Shares

Surveillance Sharing Agreement:

The inclusion of a surveillance sharing agreement in ARK's amended 19b-4 application filing allows for the exchange of surveillance information between ARK, the Chicago Mercantil Exchange (CME) futures markets, and the crypto exchange, which is likely Coinbase. This partnership aims to provide the SEC with tools to combat fraud and manipulation in the cryptocurrency market. #SEC

The SEC is expected to announce its decision in August, and any delay without subsequent approval of BlackRock's ETF could be interpreted unfavorably, potentially indicating bias. However, Ophelia Snyder, co-founder of 21Shares, expressed skepticism about a crypto exchange entering into a surveillance sharing agreement with only one party, as it undermines market transparency and linkages.

Approval Challenges and Competition:

While ARK's surveillance sharing agreement with a crypto exchange addresses some concerns, it remains uncertain whether this arrangement alone will convince the SEC to approve the Bitcoin ETF application. Additionally, ARK may face challenges from competitors like BlackRock, which may not allow Coinbase to enter into a surveillance sharing agreement to assist a rival issuer in beating them to market. Should such challenges arise, ARK might need to explore alternative options within the crypto exchange landscape. #BTC

In Summary:

ARK Investment Management has gained an advantage in the race to launch the first Bitcoin ETF in the United States through its enhanced surveillance measures. However, the approval process remains uncertain. With multiple firms seeking approval, including BlackRock, the competition for the first Bitcoin ETF is intense. The ultimate outcome will depend on the SEC's decision and the actions of competitors and the broader cryptocurrency industry. $BTC