Eric Balchunas thinks that the revised filings indicate a 75% chance of a spot Bitcoin ETF being approved by the end of the year.
On October 11, Ark Invest, an investment management company, made changes to its application for a spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC). This update aligns with the efforts of various major financial firms to meet the SEC’s requirements for their filings.
Ark Invest’s Spot Bitcoin ETF Filing Update
This development is a step closer to the eventual approval of a spot Bitcoin ETF. Eric Balchunas, a senior ETF strategist at Bloomberg, was one of the first to report on this. ARK has recently made updates to its spot Bitcoin ETF prospectus, which might address the questions and feedback the SEC provided to issuers a few weeks ago about their S-1 filings.
ARK has just filed an updated version of its spot bitcoin ETF prospectus. The SEC emailed issuers a few wks ago with comments/qs about their S-1 that they wanted addressed so is very poss ARK has answered all that in this filing. We looking thru it now.. pic.twitter.com/AlwTt82WU0
— Eric Balchunas (@EricBalchunas) October 11, 2023
One of the notable changes in the updated prospectus relates to how they calculate the Net Asset Value (NAV). The new prospectus explains that the NAV calculation is different from Generally Accepted Accounting Principles (GAAP), which addresses a concern the SEC had raised earlier.
There’s also an update stating that the Trust’s assets are held in separate accounts (wallets) on the Bitcoin blockchain when they’re with the Custodian. This setup ensures that the assets are separate from other corporate or customer assets.
The rest of the S-1 form contains a lot of other information, indicating that ARK has comprehensively addressed the SEC’s comments. With all these issues resolved, the final decision on approval now rests with the SEC.
Last week, Eric Balchunas mentioned that given the SEC’s extensive communication with spot Bitcoin issuers regarding their applications, it’s unlikely they’ll reject them. He estimates there’s a 75% chance that they’ll approve them by the end of the year.
Bitcoin Price Movement Ahead
Bitcoin investors are eagerly awaiting the SEC’s approval of a spot Bitcoin ETF, which could inject new liquidity into the market. Factors like current macroeconomic events and expectations of a Fed rate hike by the end of the year have pushed Bitcoin’s price below $27,000. However, just two weeks ago, the SEC postponed its decision on applications from BlackRock, Bitwise, and others.
The updated Bitcoin ETF filing from Ark Invest suggests that there’s positive communication happening between the regulator and major financial firms. This has boosted the confidence of these applicants in bringing their products to the market.
#Bitcoin into that area of potential longs. I'm starting to buy some here, let's see where we're heading with CPI tomorrow.
— Michaël van de Poppe (@CryptoMichNL) October 11, 2023
With all these developments regarding a Bitcoin ETF, some analysts believe it’s a good opportunity for long-term investors to start buying Bitcoin from this point onward.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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