Ark Invest Bitcoin ETF will ‘not provide investors with direct exposure to spot bitcoin’
In a significant development for the cryptocurrency exchange-traded fund (ETF) market, ARK 21Shares Bitcoin ETF has amended its strategy, transitioning from providing direct exposure to Bitcoin to offering investors indirect access. This pivot, detailed in the latest S-1 amendment, marks a critical juncture in the evolution of crypto ETFs. Per the original October prospectus, the […]...
- ARK 21Shares Bitcoin ETF has amended its strategy to provide indirect exposure to Bitcoin, transitioning from direct exposure.
- The shift brings it closer to products like the Grayscale Bitcoin Trust (GBTC), but there are distinct differences between the two.
- ARK 21Shares Bitcoin ETF operates as an ETF, tracking an index and offering indirect exposure to Bitcoin, while GBTC is a trust that directly holds Bitcoin.
- ARK 21Shares Bitcoin ETF may use financial instruments or derivatives to track Bitcoin's price, while GBTC holds actual Bitcoin.
- ARK 21Shares Bitcoin ETF is subject to specific regulatory requirements and disclosures under ETF guidelines, while GBTC operates under different regulatory provisions.
- ARK 21Shares Bitcoin ETF has a mechanism for creation and redemption involving authorized participants, while GBTC does not have a similar mechanism.
The article provides a neutral analysis of the shift in strategy for ARK 21Shares Bitcoin ETF and highlights the differences between ARK 21Shares Bitcoin ETF and Grayscale Bitcoin Trust.