The fund prospectus update from Valkyrie Investments and the new ARK Invest filing are “good signs” for the SEC’s approval of the first bitcoin ETFs. This opinion was expressed by senior analyst at Bloomberg ETF Eric 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. pic.twitter.com/GlQo4C1lBc— Eric Balchunas (@EricBalchunas) October 13, 2021
ARK Invest filed an application with the regulator to launch an exchange-traded fund based on futures for the first cryptocurrency of the Chicago Mercantile Exchange (CME) and indicated the ticker ARKA. Valkyrie has updated its prospectus for a similar product and has issued a BTF exchange identifier 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) pic.twitter.com/f7y4H4ljfv— Eric Balchunas (@EricBalchunas) October 13, 2021
Firms usually update documents and assign a ticker when everything is ready to launch and an agreement with the SEC is close, Balchunas said.
“They ask me what I’m looking at first to confirm the SEC approval. And these are just such updated forms of emission prospectuses. When launched, they fill in all the missing columns and add a ticker. However, this is bitcoin, so you cannot be sure, ”the expert said.
In September, ARK Invest amended the ARK Next Generation Internet ETF prospectus, which involved investing in Canadian exchange-traded funds based on cryptocurrencies.
The new application of the firm does not talk about Canada or GBTC options , the fund invests only in futures, Balchunas said. According to him, this is exactly what the SEC, led by Gary Gensler, is seeking.
In early August, Gensler said the agency was open to ETF launch proposals as long as they were based on CME bitcoin futures and were in compliance with the Investment Company Act of 1940. He later confirmed this position of the regulator.
In October, the SEC approved an ETF based on a basket of shares of Bitcoin-related companies from Volt Equity. Commenting on the positive decision of the Commission, CEO Ted Park noted that the majority of potential fund issuers do not take into account Gensler’s recommendations.
Recall that in February 2021, Canada was the first in the world to approve a Bitcoin ETF. In July as AtoZ Markets reported, Brazil became first in latin America to approve an Ethereum ETF.
Bloomberg analysts previously suggested that the SEC would register the first ETF based on the flagship cryptocurrency by the end of October.
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