21Shares and Cathy Wood’s Ark Investment Renew Bitcoin ETF Bid amid BTC Price Rebound

    The new filing comes as cryptocurrencies, and risk assets in general, are in recovery after a bad 2022.

    Crypto exchange-traded-product issuer 21Shares and investment firm Ark Investment Management are once again trying to get a spot Bitcoin exchange-traded fund (ETF) approved. This comes after the United States Securities and Exchange Commission (SEC) rejected two previous attempts. The firms argue that such a fund would offer protection currently not available to investors in the United States.

    The  ARK 21Shares Bitcoin ETF would trade under the ARKB ticker and would track the price of Bitcoin as measured by the S&P Bitcoin Index. The application faces deep-seated resistance from US regulators. The SEC has rejected dozens of such applications including one filed by 21Shares in 2021 and another in May 2022.

    “American investors have been hurt by crypto scams that are primarily international – and especially because there aren’t available, easy, regulated options at home,” Hany Rashwan, chief executive officer and co-founder of 21Shares, said in an interview. “We are very excited about the future of crypto as a firm and we think the United States is going to play a very big part of it.”

    An ETF is an investment product linked to commodities, currencies, stocks or bonds that allows investors to invest without owning the actual asset. A Bitcoin ETF allows investors to buy shares that track the price of Bitcoin without having to hold the cryptocurrency.

    The new filing comes as cryptocurrencies, and risk assets in general, are in recovery after a bad 2022. Some investors even argue that digital currency has the potential to act as an alternative to traditional banks.

    Meanwhile, Grayscale Investments has sued the SEC as part of its efforts to turn its Bitcoin trust into an ETF. Market watchers say the investment firm’s odds of conversion have increased following oral arguments in the case.

    As several issuers seek approval for Bitcoin-linked products, 21Shares CEO Rashwan says his company is uniquely positioned because it provides inverter protection through and through

    “We have seen greater demand from American investors for American-built products, especially over the past few months with bank failures and especially over the last year with international crypto blowups,” he said. “That’s why we’re excited about pushing crypto in a regulatory-friendly way.”

    Bitcoin News, Cryptocurrency news, Funds & ETFs, Market News, News

    Mercy Tukiya Mutanya

    Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student.
    She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.

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