Ark Invest Updates Bitcoin ETF Filing: Is SEC Approval Imminent Now?

Ark Invest, known for spotting groundbreaking tech trends, recently updated its filing for the Spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC). This follows the SEC’s discussions with issuers to simplify the filing process, suggesting a step forward in securing approval.

So, is any action being taken? Let’s read on.

Clarity on Net Asset Value (NAV)

One important update in the filing relates to the calculation of Net Asset Value (NAV). Previously, it was unclear how Ark Invest planned to calculate NAV for the Bitcoin ETF. The updated filing now clearly states that NAV calculations will not follow Generally Accepted Accounting Principles (GAAP). This indicates Ark Invest’s commitment to addressing even the most technical questions from the SEC, hinting at a positive direction in the regulatory review.

Enhancing Asset Security

Ark Invest has made a significant move to enhance asset security. They’ve specified that Bitcoin assets held by the Trust’s Custodian will be stored in separate accounts on the Bitcoin blockchain. These ‘wallets’ will remain apart from corporate or other customer assets. This setup is vital for ensuring the highest level of asset security, transparency, and accountability. It’s a direct response to the SEC’s concerns about investor asset safety.

Analysts’ Insights

Despite the filing being extended by five pages, it’s clear that the key changes are thoughtfully spread throughout the document. As noted by Eric Balchunas, a Senior ETF analyst at Bloomberg, and James Seyffart, another ETF analyst, this meticulous editing suggests an ongoing conversation with the SEC to overcome regulatory hurdles. While approval isn’t immediate, both analysts find these exchanges to be highly encouraging.

Balchunas also hints at the possibility of further delays, suggesting more discussions on “small but important details” before the SEC gives its final approval. The regulator recently issued a “notice of the designation of a longer period for commission action,” indicating additional time is needed for a decision. Despite Ark Invest’s initial expectation of a decision by September 26, the regulatory timeline appears flexible and moving in a favorable direction.

A Brighter Path Ahead

Ark Invest’s recent updates to the filing are a positive step toward securing SEC approval for its Spot Bitcoin ETF. The proactive adjustments reflect a transparent approach, addressing the SEC’s concerns head-on. While there may still be some twists in the road to approval, the journey is promising, setting a precedent for other hopeful issuers.