ARK Investment Management and crypto asset management firm 21Shares will be making changes to their 19b-4 for their spot Bitcoin exchange-traded fund (ETF) to include a surveillance sharing agreement (SSA). The two parties had re-filed the 19b-4 earlier in April this year with the US Securities and Exchange Commission (SEC) for the new fund – ARK 21Shares Bitcoin ETF. The first time they had filed the form with the SEC was two years ago.
In their third filing, ARK Investment Management and 21Sahres informed the SEC that their ETF would be listed on CBOE BZX Exchange.
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How will the amended 19b-4 affect the Bitcoin ETF?
With an amended 19b-4, ARK 21Shares Bitcoin ETF will have a structure similar to BlackRock’s ET. The global asset management company’s spot Bitcoin ETF was one of the first filings to be put before the SEC. Its choice of listing exchange was Nasdaq which noted its willingness to enter into an SSA.
ARK Investment Management’s founder and CEO Cathie Wood said the firm had been researching opportunities in the cryptocurrency domain since 2015 and has invested in crypto-related equities. Wood claims that ARK 21Shares Bitcoin TF was the “oldest active filing before the SEC ” and the company expects it to be the “first in line” to be approved by the US regulatory body.
Meanwhile, Bloomberg’s senior ETF analyst Eric Balchunas noted that ARK’s move to add an SSA will add a new twist to the story. In one of his recent tweets, Balchunas highlighted that while ARK expects SEC to announce its decision by August, BlackRock would also be in the race to hit the market with its spot Bitcoin ETF at the earliest.
In a recent blog post, 21Shares stated that the amended filing underlined its commitment to US markets and a transparent spot bitcoin ETF. The asset management company also stated that the spot Bitcoin market was “sufficiently mature and compliant” and that it justifies registration and being listed as an ETF.
Blackrock filed its 19b-4 with an SSA for its spot Bitcoin ETF on June 15. Many asset management firms are following suit as the crypto industry is abuzz with prospects of approval from the SEC. Bitcoin has also reacted sharply to the development and has been trading in the green zone.
What is 19b-4?
The 19b-4 is documentation filed by self-regulatory organizations to apprise the SEC of an internal rule change. There are several financial regulatory bodies, stock exchanges, and coin trackers which also function as self-regulatory organizations. Hence, their bylaws, rules, and regulations or changes in them must be filed before the SEC for public record keeping. While filing the 19b-4, the SRO has to justify the amended rules to the SEC and make it clear that the changes will promote fair trading practices, shield the investors’ interests, and have the required oversight procedures.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
