Ark Invest applied to create Bitcoin ETF

Investment company Ark Invest, founded by Cathie Wood, has filed an application to create a Bitcoin-peggedan exchange traded fund (ETF) in the United States.

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According to the document sent to the Commission onthe US Securities and Exchange Commission (SEC), the fund's investment goal is to track the behavior of the bitcoin market. The application was made in collaboration with the Swiss crypto fund company 21Shares AG. In early May, Wood joined the board of directors of Amun Holdings, which owns 21Shares.

21Shares US will sponsor the fund, DelawareTrust Company will be the administrator, Coinbase will be the custodian of the assets, and Ark Invest will handle the promotion. If approved, the ARK 21SHARES BITCOIN ETF (ARKB) is scheduled to list on the Chicago Board Options Exchange (Cboe) BZX platform. To track the price of Bitcoin, the fund will use the S&amp;P Dow Jones Indices LLC index, which is based on data from the exchanges Binance, Bitfinex, Bitflyer, Bittrex, Bitstamp, Coinbase Pro, Gemini, HitBTC, Huobi, Kraken, KuCoin and Poloniex.

Wood is actively supporting bitcoin and recentlystated that the cryptocurrency will not stop at a trillion capitalization. Ark Invest, in turn, invests in shares of the Coinbase exchange and in Bitcoin itself through the Grayscale trust.

The SEC has in the past rejected all applications to createbitcoin ETF. Now, several similar appeals are under consideration in the department again, but, as in previous cases, the SEC continues to shift the deadlines for making decisions. Market participants had high hopes for the approval of the bitcoin ETF with the arrival of new SEC head Gary Gensler, but he began his presidency by talking about problems in the regulation of cryptocurrencies, due to which their enthusiasm has noticeably weakened.

“Although this step became for me in some waya surprise, it is quite understandable, since Katie is on the board of directors of 21Shares, - writes Eric Balchunas, senior ETF analyst at Bloomberg. “They are present in the US, and ARK will be able to leverage this fund in its own actively managed ETFs. While this is encouraging, I have been looking forward to Bitcoin ETF approval lately as I contemplate that the hands of the SEC are tied by higher US authorities. So I think the ETF will remain on hold until some kind of regulatory framework is presented or until a crackdown is applied to the cryptocurrency industry. "

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