The ETF mania continues to rage on, as there are fresh developments coming from the issuers. ARK Invest has refiled an updated S-1 prospectus for its spot Bitcoin ETF application once again, making it the 3rd such amendment since filing the initial application.
Eric Balchunas, a senior ETF analyst for Bloomberg, reveals that the move is a “semi-shocker, but in a good way”. He highlights that the more updates there are to these documents, the better chances there are for an approval.
Indeed, ARK Invest CEO Cathie Wood previously revealed that the SEC has been highly engaged with the issuers, portraying that as a positive attitudinal shift in the agency.
Balchunas gives insider information from his sources that the SEC’s division of Corporate Finance, which approves or rejects the S-1 form, gave a second round of comments to the issuers, with ultra-specific details.
What Has Changed In ARK’s Bitcoin ETF Application?
An analysis of ARK Invest’s updated S-1 filing reveals that the $ARKB ETF will charge a Sponsor Fee of 80 bps, which in previous applications used to be 70 bps, Bloomberg analyst James Jeyffart reveals. The sponsor fee is paid by the Trust to the Sponsor as compensation for services performed.
Moreover, the update filing also includes a strategic shift in terminology, now stating that the ETF will not provide investors direct access to spot Bitcoin – opposite of what its previous application claimed.
Furthermore, there are a number of additional risk disclosures, likely to satisfy the Corporate Finance division.
Interestingly, there is no change in the 19b-4 form of the application, which the Trading & Markets division needs to approve. Eric Balchunas had previously reported that the SEC prefers cash creation over in-kind creation. The cash creation method of balancing supply and demand would be better for the SEC, but worse for the investors in terms of the spread and taxation.
Therefore, Balchunas believes that the ARK Invest could try to push back on this particular demand from the agency. However, a few Bitcoin ETF applications do utilize the cash creates method in the first place, which could pose a risk of delay for the other applications.
Bitcoin Price Prediction After The Latest ETF Update
From a price action point of view, this latest update does not make much of a difference. If anything, it further reinforces the prediction that a spot Bitcoin ETF approval is imminent and could come as soon as the 10th of January – the final deadline of ARK Invest’s application.
Consequently, experts such as @CryptoJelleNL remain bullish on the idea that the Bitcoin price will soon hit the $40k mark. He highlights that BTC wicked into the local support level of $37,000, but manages to hold strong.
Indeed, BTC is up 2% over the past day, currently trading near the $37,200 level. Bitcoin’s technicals remain strong, as it continues to outperform every important moving average indicator in the daily, weekly and monthly time frames.
New Bitcoin ETF Token Hits $1 Million Milestone In Presale
The ongoing ETF buzz is not helping the Bitcoin price only – the new Bitcoin ETF Token ($BTCETF) is also gaining significant traction, having already raised over $1.2 million in its ICO in just two weeks.
The project has come up with a novel concept to capitalize on the ongoing hype. It monitors the status of the Bitcoin ETF market and rewards its investors as and when 5 designated milestones are hit. The first milestone constitutes the $BTCETF token reaching a daily trading volume of $100 million, which would signify high user adoption.
The second and the third milestones will be achieved when the first Bitcoin ETF application is approved and on the day of its launch, respectively. Finally, the fourth and the fifth milestone celebrates the impact of the ETFs and will be achieved when they have a combined asset-under-management of $1 billion and when the Bitcoin price hits the $100k mark, respectively.
Upon the completion of each milestone, 5% of the token supply will be burned to create a deflationary impact, which could potentially boost $BTCTEF’s value. The transaction tax will also be decreased by 1% at every milestone.
The project also offers staking rewards to its investors, currently at an APY of 202%. Through this, investors could enjoy a consistent source of passive income, irrespective of the broader market outlook.
ETH ETF Token Also Surges After Spot Ethereum Filing
Bitcoin is not the only cryptocurrency that is drawing institutional interest , instead, Ethereum has also joined the party. TradFi giant BlackRock filed for a spot Ethereum ETF, immediately followed by another giant – Fidelity. Cathie Wood’s ARK invest had already filed its application for the same.
To celebrate a potential Ethereum ETF, the new ETHETF Token was launched on the Uniswap crypto exchange. The token has skyrocketed 15% over the past 24 hours with a market cap of close to $1 million, signifying the robust demand for such derivative tokens. The Dextools app has also given the project a score of 99.
Similar to the Bitcoin ETF Token, $ETHETF will also reward its investors once the SEC approves any Ethereum ETF application. Initially, the token will charge a tax of 2% on every transaction, which will eventually be burned to create a deflationary supply.
This tax will finally be removed once the Ethereum ETF is approved, celebrating an important milestone for the entire Ether ecosystem.