As Competition for BTC ETF Position Intensifies, CEO Cathie Wood States Ark Invest is Leading the Line

The initial Bitcoin ETF application was submitted in 2013 by Cameron and Tyler Winklevoss. Nevertheless, US regulators have yet to approve any such application as of now.

Currently, they appear to be under significant pressure, with some of the largest entities in traditional finance entering the competition.

Competition for BTC ETF Intensifies

Recently, the world’s largest asset manager – BlackRock – submitted an application on June 15 for a spot Bitcoin investment trust fund via iShares, the firm responsible for managing its ETF portfolio. Within a fortnight, several other firms, including competing asset management leader Fidelity, refiled for spot Bitcoin ETFs. Other notable participants include Invesco, WisdomTree, Valkyrie Investments, and VanEck.

These firms have sought to address the SEC’s concerns, as evidenced by the regulator’s legal actions against Binance and Coinbase. For instance, the BlackRock application includes a surveillance-sharing provision, marking a first for spot Bitcoin ETF submissions. Just ten days after the SEC’s lawsuits against Binance and Coinbase, BlackRock incorporated a surveillance-sharing clause into its application.

Through the surveillance-sharing agreement, the fund manager will provide trading, clearing, and customer identity information to regulators to prevent fraud and manipulation.

ADVERTISEMENT

However, reports indicated that the SEC deemed BlackRock’s application insufficient and lacking in certain specifics. Consequently, the asset manager refiled the application, indicating that it had selected Coinbase as its surveillance partner.

Ark Invest, which submitted its spot Bitcoin ETF application in collaboration with the investment firm 21Shares in April, modified its filing on June 28 to include a surveillance-sharing clause. Ark Invest is also expected to have Coinbase as its surveillance-sharing partner.

The increasing interest from major players in spot BTC ETFs has energized the entire cryptocurrency market, with BTC sustaining its price around $30K.

Ark Invest First in Line: CEO Cathie Wood

Now, there is discussion regarding which application the SEC will approve first if it grants permission.

Cathie Wood, CEO of ARK Investment, contended that her company is at the forefront if the SEC gives the go-ahead, as reported by Bloomberg. She mentioned that the agency could take until mid-January for Ark Invest’s application and until March for BlackRock’s spot BTC ETF applications to either approve or deny them.

However, clarity is expected to arrive much sooner when the court issues its ruling, anticipated in August, regarding Grayscale’s lawsuit against the SEC’s decision to reject its spot Bitcoin ETF application.

The Grayscale Bitcoin ETF aims to be entirely backed by BTC held in cold storage. Wood argued that approving a Bitcoin Futures ETF, which involves swaps, while not allowing a fully-backed Spot ETF is contradictory.

Taking all these elements into account, BlackRock does not hold an advantage over Ark Invest, according to the CEO of Ark Invest.

SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.