ARK Invest updates its spot Bitcoin ETF proposal with more details on Coinbase

ARK Invest updated its connection for a spot Bitcoin ETF done an amendment submitted to the U.S. Securities and Exchange Commission (SEC) connected Oct. 11.

Bloomberg ETF expert Eric Balchunas noted connected Twitter/X  that the update adds comments connected Coinbase’s custodial practices. Specifically, the exertion notes that assets for the money are held successful segregated addresses connected the Bitcoin blockchain, and that ETF assets are not commingled with firm assets oregon lawsuit assets.

The SEC antecedently criticized spot Bitcoin ETF applications for insufficient surveillance-sharing agreements.To code the SEC’s concern, respective applications incorporated an statement with Coinbase done amendments submitted successful July.

The updated exertion besides notes that definite valuation methods that the money uses are not successful enactment with U.S. mostly accepted accounting principles (GAAP).

Filing besides addresses mining, illicit transactions

Scott Johnsson, General Partner and General Counsel astatine Van Buren Capital, separately noted that the updated filing includes comments concerning illicit activity. The filing indicates that, if cryptocurrency is progressively utilized successful amerciable transactions, oregon if it is perceived arsenic being utilized successful specified transactions, the worth of the ETF could fall.

Johnsson besides identified a conception of the filing that concerns Bitcoin mining and energy consumption. The updated filing acknowledges that biology consequences from mining, authorities regulations, changing vigor prices, and mining steadfast closures could impact the terms of Bitcoin and alteration the worth of the projected fund.

Balchunas noted that the update whitethorn beryllium a effect to a process that the SEC initiated weeks ago. On Sept. 29, the securities regulator requested comments connected proposals from BlackRock (iShares), Valkyrie, and Invesco Galaxy and requested much extended comments connected a connection from BitWise. Though ARK Invest was not the taxable of a petition astatine that time, its update seems to code immoderate of the SEC’s concerns.

To date, the SEC has not approved a spot Bitcoin ETF. However, the bureau approved Bitcoin futures ETFs successful 2021 and approved Ethereum futures ETFs successful caller weeks.

The station ARK Invest updates its spot Bitcoin ETF connection with much details connected Coinbase appeared archetypal connected CryptoSlate.