Key Points
- ARK Invest amends its ETF application to include a surveillance-sharing agreement, following BlackRock’s approach.
- The agreement involves sharing data to detect fraud and market manipulation in the proposed ETF.
- ARK competes with BlackRock for the first spot Bitcoin ETF approval in the US.
- The SEC’s decision is expected in August, and delays could be viewed negatively unless both ETFs receive simultaneous approval, raising concerns about favoritism.
Cathie Wood’s ARK Invest has made a strategic move in its pursuit of a bitcoin exchange-traded fund (ETF) in the U.S. The firm has amended its application to include a surveillance-sharing agreement, similar to BlackRock’s recent filing.
JUST IN – Cathie Wood’s ARK Invest amended their spot #Bitcoin ETF application to be like BlackRock’s filing. pic.twitter.com/sZ7n8xfo6Q
— Bitcoin Magazine (@BitcoinMagazine) June 28, 2023
ARK Amends Spot ETF Filing To Include BlackRock-Like Feature
In its latest update to the Securities and Exchange Commission (SEC), ARK Invest has included a surveillance sharing agreement with the Cboe BZX Exchange, where the ETF would be listed, and a U.S.-based crypto exchange, most likely Coinbase. This move aligns ARK with BlackRock’s approach.
The revised application states that the exchange “is proposing to take additional steps to those described above to supplement its ability to obtain information that would be helpful in detecting, investigating, and deterring fraud and market manipulation in the Commodity-Based Trust Shares.”
A surveillance-sharing agreement involves sharing data related to market trading activity, clearing activity, and customer verification to prevent market manipulation.
ARK Competes With BlackRock for First Spot Bitcoin ETF Approval
ARK Invest submitted its request to list a spot BTC ETF for the third time in April after previous applications were rejected by the SEC in 2021 and 2022. The regulatory denials were based on ARK not fully satisfying the rules and provisions for listing a financial product.
With the amended filing, ARK now potentially competes with BlackRock for the approval of the first-ever spot bitcoin ETF in the United States. ARK’s original filing predates BlackRock’s, but both firms are vying for the same regulatory approval.
Industry analysts expect the SEC’s decision in August, and any delays could be viewed negatively unless BlackRock’s ETF receives approval simultaneously, hinting at possible favoritism.
There are concerns that BlackRock, having already selected Coinbase as its Bitcoin custodian, may not allow Coinbase to enter into a surveillance-sharing agreement with another entity that could potentially overtake it in the market.
