Home Bitcoin News ARK Investment Management Files Amended Bitcoin ETF Application, Emulating BlackRock’s Approach

ARK Investment Management Files Amended Bitcoin ETF Application, Emulating BlackRock’s Approach

ARK Investment Management has made amendments to its Bitcoin exchange-traded fund (ETF) application, aligning it with the approach taken by BlackRock in its recent filing. The updated application includes a surveillance sharing agreement with the Chicago Mercantile Exchange (CME) futures markets and a prominent crypto exchange, likely Coinbase, according to Bloomberg ETF analyst Eric Balchunas on Twitter.

The move by ARK Investment Management reflects the growing interest among asset management firms in launching a Bitcoin ETF to provide investors with regulated exposure to the digital asset. A Bitcoin ETF would enable investors to gain exposure to Bitcoin’s price movements without directly owning the cryptocurrency, potentially attracting a broader range of market participants.

The amendments to ARK’s ETF application include a surveillance sharing agreement with the CME futures markets. This agreement aims to enhance market surveillance and ensure the integrity of the ETF by leveraging the monitoring capabilities of the CME, a well-established derivatives exchange. Additionally, the amended application specifies the involvement of a crypto exchange, with Coinbase being the likely candidate. Collaborating with a reputable crypto exchange further bolsters the credibility and regulatory compliance of ARK’s proposed Bitcoin ETF.

By emulating BlackRock’s approach, ARK Investment Management seeks to align its ETF application with the strategies employed by one of the world’s largest asset management firms. This move may be intended to enhance the prospects of regulatory approval and increase investor confidence in the proposed Bitcoin ETF.

The pursuit of a Bitcoin ETF comes amidst growing demand for regulated investment products in the cryptocurrency market. An ETF would provide investors with a familiar and accessible vehicle to gain exposure to Bitcoin, potentially attracting institutional and retail investors who have been waiting for a regulated avenue to participate in the crypto market.

However, it is important to note that the approval process for a Bitcoin ETF in the United States remains complex and subject to regulatory scrutiny. The Securities and Exchange Commission (SEC) has previously raised concerns regarding market manipulation, investor protection, and the overall stability of the cryptocurrency market. While the amendments made by ARK Investment Management address certain surveillance measures, regulatory hurdles still need to be overcome before a Bitcoin ETF can be successfully launched.

Nonetheless, the alignment of ARK’s ETF application with BlackRock’s approach signals the industry’s commitment to navigating the regulatory landscape and meeting the demands of institutional and retail investors. The ongoing efforts to launch a Bitcoin ETF highlight the growing maturity of the cryptocurrency market and its increasing integration into the traditional financial ecosystem.

The amendments made by ARK Investment Management reflect the recognition of the importance of robust surveillance mechanisms in the context of a Bitcoin ETF. By entering into a surveillance sharing agreement with the CME futures markets, ARK aims to enhance market monitoring and minimize the risks associated with potential market manipulation and misconduct. Collaborating with a reputable exchange like Coinbase further ensures compliance with regulatory requirements and contributes to investor confidence in the proposed Bitcoin ETF.

The alignment of ARK’s approach with BlackRock’s filing demonstrates the industry’s collective efforts to address the concerns raised by regulatory authorities. It shows a commitment to establishing a well-regulated and transparent market for Bitcoin ETFs, which would provide investors with a regulated avenue to access the digital asset’s potential returns. By following the strategies employed by established asset management firms, ARK seeks to bolster its chances of securing regulatory approval for its Bitcoin ETF.

However, it is important to note that regulatory challenges still exist, and the approval process for a Bitcoin ETF in the United States is not guaranteed. The SEC has raised concerns about market manipulation, investor protection, custody solutions, and the overall stability of the cryptocurrency market. These concerns must be adequately addressed by ETF applicants to satisfy the SEC’s requirements and ensure a robust framework for investor protection.

Despite the challenges, the pursuit of a Bitcoin ETF is indicative of the growing interest in cryptocurrencies among institutional and retail investors. A regulated Bitcoin ETF would provide a familiar investment vehicle and facilitate broader participation in the cryptocurrency market, potentially bringing more liquidity and stability to the asset class.

In conclusion, ARK Investment Management has amended its Bitcoin ETF application to align with BlackRock’s recent filing. The amendments, including a surveillance sharing agreement with the CME futures markets and collaboration with a crypto exchange, likely Coinbase, reflect the industry’s interest in providing regulated exposure to Bitcoin. While regulatory hurdles remain, the alignment of ARK’s approach with BlackRock’s filing demonstrates the industry’s commitment to navigating the regulatory landscape and meeting the demands of institutional and retail investors. The ongoing efforts to launch a Bitcoin ETF highlight the growing maturity of the cryptocurrency market and its increasing integration into the traditional financial ecosystem.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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