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Ark Invest files with the SEC to launch a Bitcoin ETF

ark-invest-files-with-the-sec-to-launch-a-bitcoin-etf

The United States Securities and Exchange Commission (SEC) is currently reviewing eight Bitcoin exchange-traded funds (ETFs). It now has to add one more to the list as Ark Invest officially files for one with the regulator.

Ark Invest partners 21Shares to file for a Bitcoin ETF

Ark Invest, led by Cathie Wood, has filed with the US SEC to create a Bitcoin ETF. The investment firm filed for the Bitcoin ETF yesterday and will work with 21Shares to launch it. Per the filing document, the ETF’s objective is to track Bitcoin’s performance, and it would operate under the ticker symbol “ARKB” if approved by the regulator.

Cathie Wood is a longtime Bitcoin bull and has invested in the cryptocurrency market via proxies such as the Grayscale Bitcoin Trust (GBTC). However, Ark Invest now wants to create the Bitcoin ETF and make it easy for institutional investors to gain access to the leading cryptocurrency.

The S1 filing states that “A significant amount of the value of bitcoin is speculative, which could lead to increased volatility. Investors could experience significant gains, losses and/or volatility in the Trust’s holdings, depending on the valuation of bitcoin.”

Wood has always maintained her belief that Bitcoin will become part of a balanced investment portfolio. Ark Invest estimates that if companies in the S&P 500 convert 1% of their corporate cash to Bitcoin, the leading cryptocurrency’s price could surpass the $70,000 mark. If the companies make it 10%, Bitcoin’s price could rise by more than $400,000.

SEC continues to delay Bitcoin ETF decisions

The US SEC has delayed decisions to approve Bitcoin ETF proposals. It has postponed its decision on the VanEck Bitcoin ETF application twice this year. The regulator has also postponed decisions on the Valkyrie and the WisdomTree Bitcoin ETF proposals.

However, despite the SEC yet to approve a single Bitcoin ETF, VanEck and WisdomTree have filed to launch an Ether ETF with the regulator. The Ether ETF would allow institutions to gain exposure to the second-largest cryptocurrency.

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