A longtime BTC bull, Cathie Wood’s Ark Invest, has recently filed an application with the American regulator to launch a Bitcoin ETF. Until now, the company had been buying proxies from various firms, including GrayScale and Coinbase. But it now wants to own the asset itself.
If approved by the US SEC, Ark’s ETF fund, which is set to launch in collaboration with 21Shares, would trade under the name ARKB. As per the exchanges filings, an ETF’s main objective is to track the performance of the world’s most famous token, Bitcoin.
BTC Struggling to Regain May High
Over the last few weeks, BTC has been trading at around $34K as it struggles to regain the $40K mark. Meanwhile, some experts still say that the token is likely to fall to a $20K mark before regaining its value.
Since its record high in the second week of April, the currency’s value has been cut into almost half. Experts suggest that numerous factors might have caused it, including Beijing’s clampdown on miners, Tesla’s decision to stop accepting the token, and regulator uncertainty surrounding this asset.
Interestingly, the investment firm acknowledged the volatile nature of the token, citing it in its document.
SEC Reluctant to Approve ETF Applications
In a surprising development last week, the American regulator deferred an ETF approval following calls for the new head Gary Gensler for more regulation of the decentralized space. As of now, as many as eight ETF applications have been filed with the SEC.
On the other hand, Wood has stated that she wants to see the digital asset in a balanced investment portfolio. With Gensler’s appointment as the new head of the SEC, Woods expects the federal government might warm up to virtual currencies.