As one of the most vocal and unwavering Bitcoin bulls, Cathie Wood aims to launch a Bitcoin exchange-traded fund (ETF). On June 28, her firm ARK Invest partnered with 21Shares to file an application with the U.S. Securities and Exchange Commission (SEC) for the ARK 21Shares Bitcoin ETF.
Wood is among many fund managers seeking to launch cryptocurrency-focused funds, but her prominence makes this ETF one of the most anticipated. However, approval isn’t guaranteed—the SEC has yet to greenlight any Bitcoin ETF.
If you’re intrigued by crypto ETFs, here’s what you need to know.
Will ARK’s Bitcoin ETF Face Competition?
If the SEC approves Bitcoin ETFs, ARK 21Shares won’t be alone. Heavyweights like Fidelity, Grayscale Investments, WisdomTree, VanEck, and NYDIG also have pending registrations. Reports indicate at least 14 issuers have filed for Bitcoin-themed ETFs, while over half a dozen others withdrew or faced rejection.
When Will the SEC Rule on Crypto ETFs?
The timeline remains unclear. The SEC has repeatedly delayed decisions:
- In June, it postponed a ruling on Cboe Global Markets’ proposal to gather public feedback.
- For Valkyrie Digital Assets, the decision window extends to August 10.
Bitcoin advocates are frustrated. Many expected SEC Chair Gary Gensler—a former MIT digital assets professor—to fast-track approvals. However, regulatory gaps in crypto continue to unsettle federal authorities.
How Bullish Is Cathie Wood on Bitcoin?
Wood is a leading crypto evangelist. She predicts Bitcoin could hit $500,000, despite its recent ~50% drop from all-time highs. Amid China’s crackdown and U.S. regulatory debates, she asserts Bitcoin is “impossible to shut down.”
Risks of a Bitcoin ETF
Volatility is a given. The ARK 21Shares ETF highlights key risks:
- Momentum pricing swings
- Low adoption for transactions (Bitcoin remains rarely used for commerce)
- Security vulnerabilities, like lost private keys or network protocol failures
- Competition from central bank digital currencies (CBDCs)
The SEC filing details 30 pages of potential risks.
ETF Ticker Symbol
The fund will trade under ARKB.
Who Is 21Shares?
21Shares issues 11 exchange-traded products (ETPs) in Europe, listed on Swiss and German exchanges. Founded in 2018 as Amun, it now manages $2 billion in assets—up from $27 million in March 2021.
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Will the ETF Buy Bitcoin Directly?
No. The filing states:
“Unless liquidating or in extraordinary circumstances, the Trust will not purchase or sell Bitcoin directly, though 21Shares may transfer/sell Bitcoin to cover expenses.”
FAQs
1. Why hasn’t the SEC approved a Bitcoin ETF yet?
The SEC cites concerns over market manipulation, custody risks, and investor protection in unregulated crypto markets.
2. How does ARK’s ETF differ from others?
It’s structured as a physically backed ETF (holding actual Bitcoin), unlike futures-based proposals.
3. What’s the minimum investment for ARKB?
Details aren’t finalized, but most ETFs have no minimum beyond the price of one share.
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4. Can Bitcoin ETFs mitigate crypto volatility?
No—ETFs track Bitcoin’s price, so they’re equally volatile.
5. Is 21Shares a trusted issuer?
Yes, with a track record in European ETPs and $2B in AUM.
6. Could CBDCs hurt Bitcoin ETFs?
Potentially, if central banks’ digital currencies reduce demand for decentralized assets like Bitcoin.
This analysis combines expert insights with actionable details for crypto investors. Always conduct independent research before investing.
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