Ark Invest and 21Shares Make Last-Minute Changes to Bitcoin ETF Filing, SEC Deadline Looms

• Ark Invest has partnered with 21Shares to ensure their spot in Bitcoin ETF has ample liquidity in a bid to remain competitive from the dozen applicants.
• Several spot Bitcoin ETF commercials have been circulating in the recent past thus suggesting that the US SEC is highly likely to approve by January.

After the United States Securities and Exchange Commission (SEC) notified the spot Bitcoin exchange-traded funds (ETFs) applicants to update their submissions by December 29, following a series of meetings, Cathie Wood’s Ark Invest and 21Shares have filed their fifth amendment. The last-minute changes are believed to include the requirements made by the US SEC to ensure imminent approval by January next year.

Furthermore, the current US President Joe Biden has expressed the desire to run for a second term in next year’s national elections and needs something solid to convince the more than 52 million Americans invested in the crypto industry.

According to the SEC filing, the ARK 21Shares Bitcoin ETF will be traded on the Cboe BZX Exchange under the ticker $ARKB. With the fund expected to track spot Bitcoin price as provided by the CME CF Bitcoin Reference Rate, the amendment noted that the actual Bitcoins will only be settled in cash. Additionally, the applicants noted that Coinbase Custody will be the Bitcoin custodian.

Spot Bitcoin ETF Decision Deadline Looms

After years of waiting for a spot in Bitcoin ETF in the United States to enable institutional investors to invest in the crypto industry seamlessly, market experts have expressed a more than 90 percent chance that the SEC will approve a dozen of the applications by January 10. According to Ark Invest Chief Executive Officer Cathie Wood in a recent Yahoo interview, the US SEC has been asking detailed and technical follow-up questions from the spot BTC ETF applicants in addition to several meetings focused on crypto assets.

“I think the dialogues are very positive and the outlook is positive for spot Bitcoin ETF. As a such, we do think it will be in January,” Wood noted.

With most spot Bitcoin ETF applicants including BlackRock, Fidelity, Grayscale, and Valkyrie having changed their details to cash-only redemptions, market analysts are confident the US SEC is ready to approve them early next year. Moreover, the Bitcoin futures ETPs that were approved by the US SEC have been performing smoothly without technical challenges.

BTC Price Action and Market Outlook

Bitcoin price has faced increased short-term uncertainty as miners accelerate sell-off while Michael Saylor via MicroStrategy increases appetite for the flagship coin. With Ethereum price attempting to rally towards $3k amid the ongoing gradual altcoin breakout, Bitcoin price has signaled a possible reversal in the near term. Moreover, Bitcoin’s dominance has been in a freefall in the past three weeks.

On the daily time frame, Bitcoin price has formed a possible double top coupled with a bearish divergence on the Relative Strength Index. Nonetheless, Bitcoin price could through a surprise bullish breakout liquidate short sellers. Bitcoin price gained more than 12% in December to trade at $42,570.