Cathie Wood’s ARK Invest and 21Shares, a European crypto investment firm, have made their third attempt to gain approval for a spot Bitcoin ETF in the United States, indicating their resilience in the challenging cryptocurrency regulatory environment. On April 25, the companies submitted a request to the U.S. Securities and Exchange Commission (SEC) for the creation of a Bitcoin-based financial product, despite being rejected twice before. Although the SEC has approved several Bitcoin Futures ETFs, it has thus far refused to approve a spot Bitcoin ETF due to concerns over investor protection and the potential for fraud and manipulation.
However, Bloomberg’s ETF analysts suggest that a spot Bitcoin ETF may become a reality in the U.S. in the middle of this year, following the SEC’s proposal to expand the definition of “exchange.” Digital Currency Group (DCG) is also seeking to convert its flagship Grayscale Bitcoin Investment Trust into a spot Bitcoin ETF and has sued the SEC for denying its proposal.
