Cathie Wood’s Ark Invest files for a Bitcoin ETF
On June 28, Cathie Wood’s Ark Invest filed to launch a Bitcoin ETF — which would trade under the ticker “ARKB” if approved.
Backlogged: 8 other Bitcoin ETFs have been filed but so far, none received approval from the US securities and exchange commission (SEC). And in June, a decision to approve the first Bitcoin ETF was again delayed.
Investors already have lots of ways to buy Bitcoin — i.e through crypto trading platforms like Robinhood Crypto, Coinbase or the dozen other methods — but an ETF approval means more than just making it easier to buy the asset.
Why does a Bitcoin ETF matter? Acceptance and investor interest.
- The first ETF approval would support the acceptance of Bitcoin — potentially setting off a bullish signal for the asset.
- Investors could buy Bitcoin more easily — increasing demand — another bull sign.
Over the years, several companies tried to file for a Bitcoin ETF but failed. Regulators are reluctant to approve it:
- In May, Gary Gensler, the SEC chairman, called for more regulation with crypto exchanges — worrying about fraud and market manipulations.
Looking forward: John Davi, CEO of Astoria Portfolio Advisors, believes that a Bitcoin ETF is “just a matter of time” (via CNBC). But governments around the world have taken varying stances on the asset:
- El Salvador accepted Bitcoin with open arms — going as far as passing laws to make Bitcoin its official currency.
- Canada approved multiple ETFs for both Bitcoin and Ethereum.
- China is taking an aggressive stance against Bitcoin — banning bitcoin mining and institutions from crypto-related transactions.