ARK 21Shares files 5th update before deadline for spot BTC ETF applications first wave of potential approvals

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• Cathie Woods’ Ark Invest and 21Shares has submitted the fifth amendment to its sport Bitcoin ETF application.
• It comes ahead of reported deadline for spot Bitcoin ETF applicants looking to be considered among first wave of potential approvals.
• The filing could be the final one before possible approval with the firm being among the ones which capitulated to cash redemptions.

Spot Bitcoin exchange-traded funds (ETFs) filers need to submit their amended BTC ETF filings for approval by December 29, with the US Securities and Exchange Commission (SEC) mentioning that if the filings have “in-kind” (crypto redemptions) in their filings, it will be rejected. Just when experts were about to give up hope, Ark 21Shares submitted its fifth amendment.

Spoke to soon. Ark filing just dropped. @ARKInvest @21Shares https://t.co/aiDIhP4RRL pic.twitter.com/EH0PDTYRkA

— James Seyffart (@JSeyff) December 28, 2023

Missing the deadline is tantamount to missing the first wave of approved ETFs expected by January 10.

Ark 21Shares submit fifth spot BTC ETF filing amendment

Ark 21Shares has beat the latest deadline given by the US SEC for the submission of the final updates to their spot BTC ETF applications. As usual, Cathie Woods’ firms have beat the other filers, with ETF specialist opining that this could be the “very final effective update just prior to launch,” adding that it remains unclear whether they have signed an agreement.

ARK kicks off the S-1 Amendment-athon. Ahead of the pack as usual. Unclear yet what was changed tho, AP mentioned a ton but not named. Assuming that will prob come in the very final effective update just prior to launch. But we still don’t know if they have signed agreement. https://t.co/mcNgpoR451

— Eric Balchunas (@EricBalchunas) December 28, 2023

It comes after news that Cathie Wood had sold all her Grayscale Bitcoin Trust (GBTC) position, with one crypto executive saying, “It’d be a bad look to ARK ETF investors if they had shares in a competitor’s ETF.” Nevertheless, a more logical explanation would be that she wants to hold a BTC ETF rather than hold GBTC for her exposure to Bitcoin.

The reason could be 3 things:
1) She turned bearish on $BTC (very unlikely, she’s a major LT bull)
2) She wants to hold a $BTC ETF rather than hold GBTC for her exposure in Bitcoin
3) She has insider info that the ETFs will be rejected (very unlikely, she would make herself…

— Quinten | 048.eth (@QuintenFrancois) December 28, 2023

With only six days remaining before the Bitcoin Spot ETF approval window opens, the market could witness some volatility, particularly for Bitcoin price. This could see the king of crypto break out from its prevailing pattern.

Notably, the cash creates (cash redemptions) versus in-kind creates (crypto redemptions) tuff remains, with only a handful of filers having capitulated to the SEC’s demand for cash creates, including Valkyrie, BlackRock, Fidelity Investments, Ark Invest and 21Shares, and Invesco.

Difference between cash creates and in-kind creates here.

Crypto ETF FAQs

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Is Bitcoin futures ETF approved?

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Is Bitcoin spot ETF approved?

Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.

Bitcoin price outlook with Ethereum in mind

Meanwhile, Bitcoin price could get topped out around the ETF approval, with a possible move inside a range in the making. Such an outcome could serve as a signal for strength for the remainder of the markets to catch up, with BTC possibly stabilizing post-ETF, which would signal strength. Ethereum price seems primed to surge.

BTC/USDT 1-day chart, ETH/USDT 1-day chart

Elsewhere, altcoins appear to be taking a breather towards the final days of 2023, which can be interpreted as a standard de-risking precaution, with the expectation of possible rallies beginning Monday, January 1, 2024.

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