Bitcoin ETF race heats up as ARK Invest adds oversight deal to app

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ARK Investment Management amended its Bitcoin (BTC) exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission, making it similar to BlackRocks’ recent filing.

The changes include a supervisory sharing agreement with Chicago Mercantile Exchange (CME) futures and crypto exchange, most likely Coinbase, Bloomberg ETF analyst Eric Balchunas said on Twitter.

In the race for the first Bitcoin ETF in the United States, ARK’s deposit update puts it ahead of its competitors.

Cathie Wood’s investment firm and European asset manager 21Shares sought approval for a spot BTC ETF for a third time in April after previous requests were denied in 2021 and 2022. As the reason for the rejections , the regulator noted that it did not meet the rules of practice and Exchange Act requirements for listing a financial product.

Speaking in a recent interview, Bloomberg Intelligence ETF analyst James Seyffart confirmed that ARK’s demand is the frontrunner for a Bitcoin ETF. 21Shares, ARK and Cboe [Chicago Board Options Exchange] are on the front line because their next SEC decision date is Aug. 13, 2023, and we don’t yet have a date for other 19b-4 applications like BlackRock’s, he noted.

Even if ARK receives approval in the coming weeks, the BTC ETF saga may not be over, as it still needs to name a crypto exchange to enter into a surveillance sharing agreement. Although Coinbase could be a strong candidate for this position, the company has already partnered with BlackRock to become a bitcoin custodian if approval is granted.

Does BlackRock […] even allow Coinbase to enter into an SSE agreement with another that would help another issuer beat it in the market? If so, ARK would need another crypto exchange to use, Balchunas continued on Twitter.

BlackRock joined the long line of candidates on June 16, sparking a wave of similar moves on Wall Street, particularly from former candidates. Financial investment firms such as Valkyrie, WisdomTree, and Invesco have re-applyed for spot Bitcoin ETFs in recent days.

Cointelegraph contacted ARK Invest but did not receive an immediate response.

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