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May 26, 2022

Ark Investment Is Trying to Get a Spot Bitcoin ETF Again

Ark Investment and 21Shares have submitted a new application with the Securities and Exchange Commission (SEC) to establish a spot Bitcoin ETF on the Cboe BZX Exchange. The businesses have filed an application under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares, after the SEC rejected the ARK 21Shares Bitcoin ETF in early April.

Several Bitcoin ETFs were rejected by the SEC due to investor protection concerns. Under the Securities Exchange Act of 1934, the SEC has approved futures Bitcoin ETFs such as Teucrium Bitcoin Futures Fund and Valkyrie’s XBTO Bitcoin Futures Fund.

After the SEC rejected their first application under the Securities Exchange Act of 1933, Ark Investment and 21Shares have filed again for the Ark 21Shares Spot Bitcoin ETF.

Under BZX Rule 14.11(e), the companies propose to launch and trade the spot Bitcoin ETF (4). The BZX Rule governs the Cboe BZX Exchange’s listing of commodity-based trust shares.

The Ark 21Shares Bitcoin ETF will track the current market price of Bitcoin. The SEC, on the other hand, has yet to approve any spot crypto ETF, including a spot Bitcoin ETF. Because the SEC has maintained a negative posture toward cryptocurrencies, the odds of approval appear to be slim. Furthermore, the regulatory authority is concerned about investor protection.

However, as the US lags behind other nations in licensing a Bitcoin ETF, pressure on the SEC to approve a spot Bitcoin ETF is growing. Bitcoin ETFs have been allowed in countries such as Canada, Switzerland, and Australia.

The exchange and firms are requesting clearance based on the fact that CME Bitcoin Futures is a regulated market for spot Bitcoin.

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As it applies both to the CME Bitcoin Futures market and to the spot bitcoin market, the CME Bitcoin Futures market constitutes a regulated market of large size, and this proposal should be accepted.

A spot Bitcoin ETF has yet to be approved by the SEC. Grayscale Investments is hoping for the approval of a spot Bitcoin ETF. The corporation is attempting to convert its Bitcoin Trust into a Bitcoin ETF. Michael Sonnenshein, CEO of Grayscale, is optimistic about the conversion’s acceptance. Furthermore, Sonnenshein believes that if the application is denied, the corporation will sue the SEC.