Cathie Wood’s ARK Investment Management has hopped into the fray to create an ETF tracking bitcoin.
In a prospectus filed with the U.S. Securities and Exchange Commission Monday evening, Switzerland-based 21Shares and ARK Investment Management unveiled the ARK 21Shares Bitcoin ETF (ARKB), the 11th bitcoin ETF filing since last December. According to the prospectus, ARKB would track the S&P Bitcoin Index and would be listed on the Cboe Global Markets.
The American arm of crypto firm 21Shares is officially the sponsor of the trust, while ARK Investment Management would provide assistance in the marketing of the shares. Crypto giant Coinbase would custody bitcoin on behalf of the ETF.
The fund would charge a 0.95% expense ratio.
While several U.S. funds track companies that operate in the cryptocurrency space or hold bitcoin on their balance sheets, regulators have yet to approve an ETF that directly holds bitcoin.
Comment Period Extended
The SEC most recently extended the comment period on whether to approve the VanEck Bitcoin Trust through early July. In doing so, the regulatory agency sought feedback on whether investors believe bitcoin, and by extension cryptocurrencies, as asset classes are transparent and liquid enough to avoid extreme volatility and market manipulation.
The markets lent ammunition to skeptics of crypto earlier this month, when nearly half of bitcoin’s value was wiped out on the news of a crackdown in China against crypto miners and use by financial institutions.
But Wood, who’s built a following on her steadfast belief in making long-term bets on disruptive technologies through her funds, said in May that she believes bitcoin will hit $500,000 once renewable energy is integrated into the power-heavy process of mining the cryptocurrency.
At least 10 other issuers have previously filed to open their own bitcoin ETFs in the past.