The updated filings include an expanded prospectus detailing the proposed BTC ETF’s structure, asset custody procedures such as individual wallets for each Bitcoin, and valuation methods. They also highlight the creation of segregated accounts on the Bitcoin blockchain for holding assets. These adjustments signify a proactive dialogue with the SEC and progress being made towards potential approval.
Bloomberg analysts viewed these amendments as positive signs. They noted that the prospectus is now five pages longer, reflecting ARK’s thorough response to SEC’s comments.
Meanwhile, Grayscale Bitcoin Trust (GBTC) is approaching a crucial deadline following a New York court ruling against the SEC’s refusal of its application to convert into a spot Bitcoin ETF. The regulator is obligated to deliver a final verdict by January 10, 2024. GBTC’s Net Asset Value (NAV) discount is diminishing rapidly, indicating market anticipation of likely SEC approval.
There are two prevailing theories regarding the SEC’s decision-making process: it may either have to approve all compliant applications or could approve all simultaneously to avoid giving any applicant a first-mover advantage. The market predicts mass approval by January next year, with early approval deemed unlikely and rejections considered improbable due to the initiation of dialogue by the SEC and the ongoing recovery of GBTC’s NAV.
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Source: Cryptocurrency - investing.com
