Ark Invest Bitcoin ETF will ‘not provide investors with direct exposure to spot bitcoin’

CryptoSlate
CryptoSlate

20 Nov 2023 2:30 PM

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.

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You May Ask

What is the main difference between ARK 21Shares Bitcoin ETF and Grayscale Bitcoin Trust?How does ARK 21Shares Bitcoin ETF provide indirect exposure to Bitcoin?What regulatory requirements does ARK 21Shares Bitcoin ETF have to comply with as an ETF?Does Grayscale Bitcoin Trust hold actual Bitcoin or use financial instruments to track its price?What is the mechanism for creation and redemption in ARK 21Shares Bitcoin ETF?

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