Crypto World Shakeup: ARK Invest Chief Cathie Wood Foresees Simultaneous Green Light for Bitcoin ETF
In a stunning twist in the world of cryptocurrencies, Cathie Wood, the trailblazing CEO and CIO of ARK Invest, dropped a bombshell on August 7th. Wood declared that the U.S. Securities and Exchange Commission (SEC) might be on the brink of approving not just one, but multiple Bitcoin spot ETFs in one fell swoop! However, she also hinted that this groundbreaking decision might not come to pass before a looming deadline.
During a riveting interview with Bloomberg, Wood exclaimed, "I believe that if the [U.S. Securities and Exchange Commission] is going to give the nod to a Bitcoin ETF, it's going to give the nod to more than one simultaneously... Most of these will essentially have the same features, and the ultimate test will boil down to effective marketing and impactful communication."
Before Wood's revelation, eagle-eyed Bloomberg interviewers floated the idea that the SEC could synchronize all ETFs on a "common clock" and put every ETF application on an equal footing.
Traditionally, the SEC would pass judgment on each application based on the chronological order of submission. However, the present scenario is rife with a multitude of eerily similar applications.
ARK swooped in with its application for a Bitcoin spot ETF on May 15th. Subsequently, finance heavyweight BlackRock thrust forward a more prominent application on June 15th, sparking a frenzy of applications from other players in the arena. Not to be outdone, ARK then updated its submission at the tail end of June, appending a groundbreaking surveillance-sharing accord with Coinbase, perfectly aligned with these rival submissions.
Advocates for fairness rather than just similarity have voiced the call for synchronized Bitcoin ETF green lights. Grayscale, standing out for its aspiration to metamorphose its existing GBTC fund into an ETF, passionately contends that the SEC shouldn't grant undue advantages or cherry-pick victors and vanquished by giving the green signal to specific applications upfront.
Wood, a veteran investor in Grayscale's GBTC fund, tantalizingly hinted at ARK's stance, yet refrained from revealing whether the company would part ways with its GBTC holdings should the much-anticipated ETF conversion manifest.
In a captivating tête-à-tête, Wood painted a picture of hope by underscoring U.S. legislators' endeavors to mount a challenge against the SEC – a hopeful undercurrent for the impending ETF proposals.
Odds Against Aug. 13 Decision
Per the looming deadlines, the SEC is slated to issue its verdict on ARK's application by August 13th. Nevertheless, both Bloomberg's probing interviewers and the astute Wood painted a portrait of likelihood for delay. Wood explicitly stated that odds are the deadline will "come and go" without much ado.
Insider intelligence from CNBC delineates that the SEC possesses the power to stretch deadlines for a substantial 240 days. This tantalizing possibility implies that the SEC might push back the verdict on ARK's application as far as January 2024, and the fate of other Bitcoin spot ETFs could hang in the balance until March 2024.
The SEC's firm stance against proposed Bitcoin spot ETFs remains steadfast, tossing aside offerings from all corners, including prior petitions from ARK and its close ally 21Shares. A stern no was dealt to one of ARK's applications in January 2023, followed by another chilly rejection in April 2022.