ARK Invest, along with 21Shares, has submitted a Bitcoin ETF proposal to the US Securities and Exchange Commission (SEC). So is there any chance of it being approved this time?
New Bitcoin ETF proposal is on the agenda
The new proposal was brought up by a Bitcoin-friendly Twitter magazine. Cathie Wood is best known as the founder and CEO of ARK Invest, an investment firm with $29 billion in assets under her management.
Today’s offer is not the first Bitcoin ETF to be tabled in the US SEC. A number of other organizations, including the Winklevoss brothers, have recently submitted their proposals. However, it stands out that the SEC has been quite reluctant to approve any of the proposals.
According to the SEC, these proposals must undergo serious consideration to fully meet the threshold the commission has set for serious consideration. Most of the issues that need to be resolved with offers are related to security and market authenticity. Just last week, the commission announced they were delaying an ETF decision.
Why is it not accepted?
Bitcoin is a fairly new type of digital asset that uses Blockchain technology to run its secure network. This system has been working non-stop for the last ten years. Indeed, Bitcoin is known as the pioneering cryptocurrency that has inspired the creation of thousands of other crypto projects. But while the cryptocurrency market is popular, it also struggles with a number of issues that keep investors away.
Among these issues, as noted by the SEC; It includes the use of crypto in criminal activities such as market manipulation, security of client funds, money laundering and drug trafficking. The US SEC has made it clear that it will have no problem approving an ETF if these tough issues are resolved. Recently, various relevant organizations have been working to address these issues and submit the most viable ETF proposal to the SEC.