Key Points:

• ARK Invest and 21Shares jointly listed the ARK 21Shares Bitcoin ETF on December 19 on the DTCC website.
• Both firms embraced the SEC’s recommended “cash create” redemption mechanism for the ARKB Bitcoin ETF.
• With a January 10, 2024, deadline, ARK 21Shares is optimistic about SEC approval for their Bitcoin ETF.

In a joint initiative, ARK Invest and 21Shares announced the ARK 21Shares Bitcoin ETF (ARKB) on December 19, marking its listing on the DTCC website. Notably, the “Create/Redeem” column on the platform reflects an “N” status.

ARK 21Shares Bitcoin ETF Listing Marks Significant Development

The collaboration submitted an S-1 amendment to the United States Securities and Exchange Commission (SEC), revealing their adoption of the SEC’s recommended “cash create” redemption mechanism for the proposed product. Analysts Eric Balchunas and James Seyffart of Bloomberg Intelligence pointed out that ARK 21Shares Bitcoin ETF has now joined the ranks of the “cash creations club.” A recent filing on December 18, 2023, indicated that ARK and 21Shares had embraced the SEC‘s cash creation and redemption model for the ARK 21Shares Bitcoin ETF, aligning with the regulatory push for this approach. This development follows the SEC’s recent engagement with BlackRock, a prominent investment asset management firm. The discussions revolved around the choice between a cash creation model summary and an “in-kind” redemption model for upcoming ETF offerings. BlackRock, too, has acquiesced, submitting an S-1 amendment specifying transactions “in exchange for cash” and potentially for bitcoin, subject to regulatory approval. The deadline for the SEC’s decision on the ARK 21Shares Bitcoin ETF filing approaches, set for January 10, 2024. Despite the looming deadline, the Florida-based asset management firm remains optimistic about receiving a favorable response from the regulatory body, solidifying the industry’s evolving embrace of SEC-endorsed redemption models for Bitcoin ETFs.

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