Cathie Wood Optimistic on Bitcoin ETF Approval: A New Dawn for Crypto?

ByGavin Cole

Oct 24, 2023

Cathie Wood, CEO of Ark Invest, has expressed optimism that the U.S. regulators will soon approve a Bitcoin ETF. This comes after years of rejections and recent communications between Ark Invest and the SEC about their Bitcoin ETF application. Wood hints at the possibility of multiple approvals happening simultaneously.

Cathie Wood’s Optimism on Bitcoin ETF Approval

The renowned Ark Invest CEO, Cathie Wood, has become increasingly optimistic about the U.S. regulatory landscape for Bitcoin ETFs. After years of facing rejection, there seems to be a silver lining on the horizon.

Wood disclosed in a recent interview that Ark Invest has been actively communicating with the SEC concerning their Bitcoin ETF application. This interaction is being perceived as a shift in regulatory stance, hinting at potential approval.

Speaking on the matter, Wood shared, “The sentiment regarding Bitcoin ETF approvals is increasingly positive. We might see not just one but several ETFs being given the green light.” This comes after the SEC’s unsuccessful attempts to halt ETFs through legal means.

The ball is now in the SEC’s court, compelled by a judicial directive to reassess prior ETF rejections. The decision by the agency not to contest further has set expectations high for potential approvals by the close of the year, especially considering the approaching application deadlines.

Anticipation High as Ark Invest Awaits Bitcoin ETF Approval

Ark Invest, after its June application, is ambitiously eyeing the lucrative first-mover advantage in the Bitcoin ETF arena, with a crucial January deadline around the corner. They’re not alone in this endeavor; other leading asset managers, such as Fidelity and Galaxy Digital, are similarly awaiting green lights for their spot crypto ETFs from the SEC.

Such an approval would mark a historic shift, granting mainstream stock market investors their inaugural opportunity for direct Bitcoin exposure through their regular brokerage accounts. This move is anticipated to catalyze a substantial influx of capital into the crypto space.

The current landscape hints at a positive shift toward Bitcoin ETF approvals, with eager issuers standing by to roll out this much-anticipated investment tool. Yet, while the momentum is palpable, the traditionally unpredictable SEC approval process might still throw a spanner in the works. Nevertheless, Cathie Wood’s recent remarks resonate with an air of optimism.

BlackRock’s iShares Bitcoin ETF Move Gains Momentum

Bloomberg’s Eric Balchunas hinted on October 23rd that BlackRock, the world’s largest asset manager, may soon allocate seed funding to its iShares spot Bitcoin (BTC) ETF. Citing recent documentation, Balchunas postulated that BlackRock is poised to invest seed capital sometime this October. 

This practice, known as ETF seeding, entails buying a specified number of “creation units” in exchange for ETF shares. If BlackRock’s actions are any indication, it seems they are gearing up for a swift launch of this ETF.

However, a sense of mystery remains. BlackRock has yet to publicly validate any such acquisition, and the documentation in question lacks detailed specifics on pricing or the exact date. Curiously, these details appear to be placeholder data, hinting at potential updates down the line.

Shedding more light on the situation, Balchunas, in a subsequent tweet, remarked that BlackRock’s ETF has found a spot on the roster of the Depository Trust & Clearing Corporation, the key player in clearing Nasdaq trades.

BlackRock Leads the Pack in Bitcoin ETF Race

BlackRock’s significant stature in the asset management world means its foray into the Bitcoin ETF realm is particularly noteworthy. The firm was among the pioneers to lodge an application for a spot Bitcoin ETF earlier in June, setting off a domino effect with numerous other entities following suit.

The collaborative surveillance-sharing agreements between BlackRock and entities like Coinbase, incorporated within their ETF proposals, could potentially bolster their approval chances.

Yet, the road to Bitcoin ETF approvals remains unpaved. As of now, the U.S. Securities and Exchange Commission hasn’t given its nod to such a fund. The SEC, after gleaning insights from revised applications, has opened the floor for public feedback on multiple submissions. The calendar next highlights a pivotal January 2024 deadline, which pertains particularly to ARK Invest’s ETF proposal.

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