Approval for virtual currency investment
Cathie Wood, CEO of the U.S. hedge fund ARK Invest, said that the U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin spot ETFs (exchange traded funds) will be a great opportunity for institutional investors considering investing in crypto assets (virtual currencies). In response, the company clarified its belief that there is a possibility of giving a “definitive seal of approval.”
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Wood said a Bitcoin spot ETF is a “much easier way to access Bitcoin” than owning physical assets through a cryptocurrency exchange. He also emphasized that Bitcoin ETFs are regulated, which protects retail and institutional investors.
If the SEC approves[the fund]after all the discussions, we think investors will take great comfort in the fact that it will give them a seal of approval that they didn’t have before.
Wood believes that over the next five to 10 years, institutional investors will be the biggest contributor to the rise in Bitcoin prices, with Bitcoin prices expected to rise by around $650,000 ($95.5 million) in the base case. yen equivalent).
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He said he expects the Bitcoin price in a bullish case to be in the range of $1 million to $1.5 million (147 million yen to 220 million yen).
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Increased chance of approval
ARK Invest partnered with 21Shares, a major Swiss-based asset management company, to resubmit a Bitcoin spot ETF in April. ARK’s Bitcoin spot ETF that it applied for in the past was not approved by the SEC, but this time it has incorporated compliance mechanisms such as a monitoring and sharing agreement to reduce SEC concerns.
Many investment companies, including ARK, major U.S. asset management companies BlackRock, Invesco, Grayscale, and Bitwise, are applying to list Bitcoin spot ETFs, but the SEC has postponed the deadline for approval.
Ophelia Snyder, president of 21Shares, said a “pattern shift” has occurred in recent months as many companies seek to approve physical Bitcoin ETFs. “The very big differences between the previous review process and this one is a very encouraging sign that it will lead to a different outcome,” she said.
This “changing pattern” includes companies applying for spot ETFs revising and submitting their applications multiple times. The company appears to be making ongoing adjustments in its meetings with the SEC, which makes it more likely that it will ultimately be approved.
In November, ARK revised and submitted the application for the Bitcoin spot ETF, which is currently under review. Most recently, it was revealed on the 4th that BlackRock and Bitwise filed revised versions of their physical ETF applications (Form S-1) with the SEC.
BlackRock held a meeting with the SEC on the 28th of last month, and it is reported that Grayscale and Invesco also held meetings with the SEC.
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Possibility of Bitcoin ETF being approved all at once
ARK’s application has the closest final review deadline of all current physical Bitcoin ETF applications, scheduled for around January 10, 2024.
Wood said ARK “is at the forefront of approvals, but we think many companies will be approved at the same time,” suggesting more than a half-dozen ETFs could be approved in the first round. . He cited the fact that many applications are essentially the same.
According to James Seifert of Bloomberg Intelligence, the updated filings filed with the SEC are similar. As a result, he believes the SEC may be issuing the same or very similar instructions to multiple issuers, and points out that discussions toward simultaneous approval may be progressing positively. did.
More recently, BlackRock has reported to the SEC the receipt of $100,000 in seed funding for its pending iSHARES® BITCOIN TRUST, according to the company’s SEC filings.
The seed funding signifies preparations for ETF issuance, leading to speculation that it could be a sign of approval.
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