Cathie Wood, Chief Investment Officer and Portfolio Manager at ARK Investment Management LLC, has hypothesized that the US Securities and Exchange Commission (SEC) would approve many mock Bitcoin ETFs all at once.
During a interview with Bloomberg on August 7, 2023, Wood, who has over 40 years of experience and founded ARK in 2014, gave this important prediction. The conversation took place in 2023.
An application for a spot Bitcoin exchange-traded fund was submitted by ARK Investment Management in June 2023. ARK Investment Management is known for its focus on disruptive innovation, and the company submitted the proposal.
The growing interest of large financial firms such as Black rockFidelity, WisdomTree, VanEck and Invesco, all of which have filed applications for spot Bitcoin ETFs similar to ARK’s, reflect a broader trend in the market.
Grayscale, a leading authority on digital currency investing founded in 2013 by Digital Currency Group, is currently embroiled in legal proceedings with the SEC. With assets including BTC, ETH, ETC, MANA, SQL, and BCH, the company sent a letter to the regulator in July, urging simultaneous approval of all proposed spot Bitcoin ETFs. This request is made to promote fairness between applicants and to prevent any single ETF from gaining an advantage.
The SEC has until August 13, 2023 to rule on ARK’s petition; so far, the agency has never approved a spot cryptocurrency ETF in the United States. ARK suggests listing its shares in an exchange-traded fund (ETF).
The regulatory body responsible for the sector has a maximum of 240 days, which brings the deadline for their decision forward to January 2024.
As regulators in other countries, notably Canada, have historically allowed analog spot ETF deposits from bitcoin firms, the push for spot Bitcoin ETFs is gaining momentum. This will further boost demand for spot Bitcoin ETFs.
Wood’s prediction of simultaneous approval and Grayscale’s campaign for fairness both raise the possibility of a regulatory shift for bitcoin exchange-traded funds (ETFs) in the United States.
Image source: Shutterstock