Ark Invest updates Spot Bitcoin ETF prospectus; ETF specialist anticipates more delays

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• ETF specialist Eric Balchunas has indicated that Cathie Wood’s Ark Invest filed an updated version of its Spot BTC ETF.
• Among the changes, the firm articulates that the trust’s assets are not commingled with corporate or other customer assets.
• Balchunas anticipates more back and forths with SEC on certain small but important details, hence more delays.

Ark Invest, the renowned American investment management firm associated with Cathie Wood, has updated its Spot Bitcoin exchange-traded fund (ETF) filing after a recent feedback from the US Securities and Exchange Commission (SEC). It comes as several issuers continue to await the financial regulator’s decision.

Also Read: Former BlackRock director estimates Bitcoin spot ETF to be approved by April 2024

Ark Invest edits and updates Spot ETF filing

Ark Invest asset management firm has improved its Spot BTC ETF prospectus, weeks after the commission emailed issuers with comments and questions regarding their forms S-1. In the email, the financial regulator had details that they wanted addressed. According to ETF specialist Eric Balchunas, it is highly likely that the firm has answered all the commission’s concerns in its latest submission.

Among the changes spotted, under the Net Assets Value (NAV) Determination, the new prospectus features details on how the NAV calculation is not in accordance with GAAP accounting. The SEC had comment about this issue in its address weeks ago.

Net Asset Value Determination

Another new addition is that the filing articulates that the Trust’s assets with the Custodian are held in segregated accounts (wallets) on the Bitcoin (BTC) blockchain. With this, the assets are not commingled with corporate or other customer assets.

The subsequent pages of the form S-1 feature a lot of other material, but the new stuff is featured in different places of the first two pages. This points to ARK getting the SEC’s comments dealing with them all. With the issues all responded to, it remains to the SEC to weigh whether to approve or not.

According to Balchunas, there will be a few back and forths with the SEC on small but important details about the process, which ultimately leaves the door open for more engagements before the financial regulator can finally give a green light.

Noteworthy, Ark Invest expected to receive a decision on its filing on September 26 but did not. In fact, the regulator beat the deadline by three days, giving a “notice of the designation of a longer period for commission action to determine whether to approve or disapprove a proposed rule change…”