ARK files revised Bitcoin spot ETF application, introduces surveillance sharing agreement, analyst: Leading BlackRock

ARK Invest and digital asset management company 21Shares submitted their Bitcoin spot ETF application for the third time in April this year. However, the market's attention is focused on BlackRock. In response, ARK's ETF has been revised to incorporate the surveillance-sharing agreement found in BlackRock's ETF.

Surveillance-Sharing Agreement

The Cboe BZX Exchange amended the Bitcoin spot ETF document with Ark and 21Shares on June 28, adding a surveillance-sharing agreement. As previously reported, it is defined as follows:

The surveillance-sharing agreement allows collaborators to share information regarding "market trading activities," "clearing activities," and "customer identities," thereby reducing the potential for market manipulation. This agreement can help exchanges detect and prevent potential fraud and manipulation, and improve market transparency and efficiency.

Report: Ark's Bitcoin Spot ETF Surveillance-Sharing Agreement Could Bring Billions of Dollars into the Investment Market

Previously, Ark and 21Shares' Bitcoin ETF applications were rejected twice by the SEC for reasons including "not in compliance with trading laws" and "failure to demonstrate that their proposal meets requirements to prevent fraud, among other malicious activities."

However, as Ark and 21Shares submitted their ETF application earlier than BlackRock, coupled with the introduction of the surveillance-sharing agreement, several ETF analysts believe that Ark's ETF is likely to be approved first.

Ark Analyst: We're Ahead of BlackRock

Ark analyst Yassine Elmandjra told foreign media:

Ark and 21Shares submitted their documents to the SEC as early as April this year, making them the only Bitcoin spot ETF application currently ahead of BlackRock.

Bloomberg Analyst: Ark is Indeed Leading the Pack

Bloomberg analyst James Seyffart pointed out that Ark, 21Shares, and the Cboe Exchange are currently in the lead, as the next decision date by the SEC for their applications is August 13, while other Bitcoin ETFs that have applied through the 19-b4 process, such as BlackRock, do not have a specific date yet.

On June 27, James Seyffart speculated that Cboe would attempt to amend the application, introduce the surveillance-sharing agreement, which turned out to be true.

Another Bloomberg analyst, Eric Balchunas, also tweeted after Cboe amended the application:

They modified the 19-b4 process, introduced the surveillance-sharing agreement, making their application specifications similar to BlackRock's, and putting Ark's ETF in a favorable position to be approved first, as they submitted their application earlier than BlackRock.

JUST IN: ARK has amended their 19b-4 for spot bitcoin ETF to include a surveillance sharing agreement bt CBOE and a crypto exchange (likely Coinbase), which makes their's like BlackRock's filing now, and puts them in pole position to be approved first bc they filed first. pic.twitter.com/P8PCmPdhln

— Eric Balchunas (@EricBalchunas) June 28, 2023

The crypto market has been calling for a Bitcoin spot ETF for years, especially after the introduction of futures ETFs. While ETF analysts seem to have valid reasons, Bloomberg analyst Eric Balchunas also pointed out when Ark and 21Shares submitted their application for the third time in April this year that the Bitcoin spot ETF is expected to go live in the middle of the year, but with 2023 already more than halfway through, the anticipation seems to be delayed once again.