According to Coincu, the ARK 21Shares spot Bitcoin ETF is making progress towards its launch, with ongoing discussions with the United States Securities and Exchange Commission (SEC). The collaboration between ARK Invest and 21Shares recently submitted an S-1 amendment, dated December 18, 2023, to the SEC for their spot Bitcoin ETF.
The filing indicates that the firms have embraced the SEC’s recommended "cash create" redemption mechanism for the proposed product. According to ARK's registration statement, the ARK 21Shares spot Bitcoin ETF will exclusively allow cash creations and redemptions. The document hints at the possibility of authorized participants creating and redeeming shares through in-kind transactions, pending regulatory approval.
This move aligns with the SEC's recent efforts to encourage the adoption of the cash creation model for the redemption of spot Bitcoin ETFs. Notably, last month, the SEC engaged in discussions with BlackRock, a top investment asset management firm, emphasizing the choice between the cash creation model and "in-kind" redemption for upcoming ETF offerings. BlackRock, in its 6th official meeting with the SEC, and Valkyrie, in a recent meeting, explored options for their respective spot Bitcoin ETFs. The focus of these discussions revolved around the SEC's preference for the cash creation model, signaling a broader industry trend toward embracing this redemption mechanism for spot BTC ETFs.
