The Fate of Spot Bitcoin ETFs Depends on SEC’s Response to ARK Invest!

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• Under the leadership of Gary Gensler, the SEC has extended the decision period for spot BTC ETFs, reflecting complexities and public concerns, now lasting up to 240 days.
• Ark Investment is seeking approval for an ETF to track Bitcoin’s performance, using data obtained from multiple crypto exchanges indexed by the S&P Bitcoin Index.
• The company recently sold approximately 102,672 shares of Grayscale Bitcoin Trust (GBTC), earning around $3.6 million in the process.

The U.S. Securities and Exchange Commission (SEC) is approaching the decision date for ARK Invest’s spot Bitcoin ETF application!

Deadline Approaching for ARK Invest

As the decision date of January 10, 2024, for the U.S. Securities and Exchange Commission’s (SEC) decision on Ark Investment’s spot Bitcoin (BTC) exchange-traded fund (ETF) application approaches, the financial world is closely monitoring. The Florida-based asset management company, led by Cathie Wood, updated S-1 filings with the SEC until December 2, 2023, expecting potential approval for the controversial Ark21Shares Bitcoin ETF.

Under the leadership of Gary Gensler, the SEC, reflecting complexities and public concerns around spot BTC ETFs, has extended the decision period to 240 days. This extension follows the rejection date of similar applications by the financial regulator. Ark Investment, founded by Cathie Wood in 2014, seeks approval for an ETF to track Bitcoin’s performance, using data obtained from multiple crypto exchanges indexed by the S&P Bitcoin Index. The proposed ETF resulting from a partnership with 21Shares is preparing to be listed on the Cboe BZX Exchange.

In a recent interview with Wood, she expressed confidence that such a step by the SEC would bring a new level of credibility to spot Bitcoin ETFs. Wood also predicted a significant increase in BTC prices, suggesting it could reach between $1 million to $1.5 million. Bloomberg analysts rated the likelihood of SEC approval above 60%, indicating a cautiously optimistic market sensitivity.

ARK Balances Portfolio Ahead of SEC Decision

Following the pending decision, Ark Investment actively manages its crypto-related assets. The company recently sold around 102,672 shares of Grayscale Bitcoin Trust (GBTC), earning approximately $3.6 million in the process. Additionally, on December 5, Ark disposed of over 200,000 shares of Coinbase. Despite these sales, GBTC remains the third-largest asset in the ARK Next Generation Internet ETF (ARKW) portfolio, comprising about 8.36%.

These transactions reflect Ark’s strategy of accumulating shares during market downturns and liquidating some assets during upward trends, aligning with the current market environment where Bitcoin has shown significant growth in the last quarter of 2023. The leading cryptocurrency, with a market value of $43,710 at the time of writing, has increased by over 16% from its value in the previous month.

The upcoming decision by the SEC on Ark’s spot BTC ETF holds significant implications for Ark Investment and the overall cryptocurrency market. Approval could signify a new era of legitimacy and mainstream acceptance for crypto-based financial products. Conversely, a rejection could reinforce existing doubts and regulatory concerns regarding such products.