Fearless of high volatility! Ark Investment Teams Up with 21Shares to Apply for Bitcoin ETF "ARKB"

Ark Investment Management, in collaboration with the cryptocurrency ETP issuer 21Shares, has submitted an application to the U.S. Securities and Exchange Commission (SEC) to become the latest institution to apply for a Bitcoin ETF.

Ark Bitcoin ETF

According to the document submitted to the SEC on 6/28, the new product "ARK 21Shares Bitcoin ETF" in collaboration with 21Shares, with the stock symbol ARKB, is set to be listed on the BZX exchange of the Chicago Board Options Exchange if approved.

The ETF will track the S&P Bitcoin Index, with 21Shares as the issuer and Ark Investment assisting in the sale of the ETF.

According to a previous report by Bloomberg, 21Shares has previously launched multiple cryptocurrency ETP products and is the fourth-largest issuer of crypto products. Ark Investment's founder, Cathie Wood, has also joined the board of directors of Amun Holdings, the operator of 21Shares, after investing in the company personally.

SEC Acts as Gatekeeper for ETFs

So far, the SEC has rejected all Bitcoin ETF applications, including those from previous applicants such as Fidelity, Goldman Sachs, VanEck, NYDIG, SkyBridge Capital, Bitwise, and others.

Furthermore, the SEC has delayed the applications for Bitcoin ETFs from VanEck and Valkyrie Digital Assets, and recently released a public solicitation document in mid-month to gather opinions before considering the approval of VanEck's Bitcoin ETF. The main concern seems to be around addressing issues related to the potential market manipulation of a Bitcoin ETF.

Ark Continues to Increase Holdings in Coinbase

Despite Coinbase's milestone listing in the crypto industry, its market performance seems to have been overly emphasized, with its stock price dropping by as much as 50% post-listing. However, Ark Investment views this as a rare buying opportunity and continues to increase its holdings in Coinbase.

Ark Investment's founder, Cathie Wood, has previously emphasized that over the next five years, Coinbase stock presents an excellent buying opportunity during dips.

Upcoming Dialogue with Musk

On 6/24, the Crypto Council for Innovation (CCI) led by Twitter's Jack Dorsey announced the establishment of The ₿ Word to promote corporate adoption of Bitcoin, set to launch on 7/22, with Ark Investment being one of the co-hosting institutions.

The highlight is that Musk has agreed to attend at Jack Dorsey's invitation. This event will likely lead to further discussions on Bitcoin among Cathie Wood, Jack Dorsey, and Musk. Cathie Wood also expressed her anticipation for the upcoming dialogue on Twitter.