One notable adjustment pertains to net asset value (NAV) calculations, which ARK Invest acknowledged were not aligned with Generally Accepted Accounting Principles (GAAP), the accounting standard endorsed by the SEC.
Bloomberg ETF analyst Eric Balchunas recently took to social media platform Expose ARK Invest’s latest amendment to its spot Bitcoin exchange traded fund (ETF) filing may signal a positive step towards future approval for a Bitcoin ETF.
It is worth noting that Securities and Exchange Commission (SEC) sent comments and questions to issuers a few weeks ago, seeking clarifications and adjustments to their S-1 documents.
In response, ARK Invest and 21Shares Presented On Wednesday an updated application for their Spot Bitcoin ETF included additional information detailing the fund’s operating procedures, such as asset custody and valuation methods.
Balchunas shared his perspective on these developments, saying that the amendment to the filing means that “ARK received the SEC’s comments and has dealt with all of them, and has now put the ball back in the SEC’s court.” Balchunas expressed his optimism, calling these changes “a good sign” and a clear indicator of “solid progress”.
Similarly, James Seifert, another ETF analyst at Bloomberg, suggested This clarification reflects the open communication between ARK Invest, 21Shares and the SEC, which is a positive sign for future approval. Although ARK’s accountability is a positive development, it does not necessarily guarantee immediate approval. Balchunas said the SEC could engage in back-and-forth discussions on specific details, and the regulatory process could take time.
However, it is important to recognize that the SEC’s rigorous scrutiny is part of its mandate to ensure investor protection and market integrity.
Key changes in ARK’s updated prospectus
One notable adjustment pertains to net asset value (NAV) calculations, which ARK Invest acknowledged were not aligned with Generally Accepted Accounting Principles (GAAP), the accounting standard endorsed by the SEC.
Another significant change in the updated prospectus involves the management of assets. The document notes that trust assets held by the custodian are held in separate accounts on the Bitcoin blockchain, often referred to as “wallets.” These assets are clearly mentioned not to be mixed with corporate or other client assets.
This separation is a clear response to concerns regarding the security of assets in the crypto sector. This reflects ARK’s commitment to ensuring the security and transparency of Bitcoin holdings.
Scott Johnson, general partner at Van Buren Capital, also weighed in on the amended filing. He Thrown light on A new addition to the filing, which addressed concerns related to potential negative impacts on the value of the ETF.
In particular, it mentions the risks of Bitcoin being used for illegal purposes and the environmental impacts of Bitcoin mining. Johnson said ARK’s amendments demonstrate a willingness to cooperate with the SEC rather than create unnecessary barriers through disclosure review.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves writing about real-life applications of blockchain technology and innovations to promote general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain media and sites.
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