ARK Invest has updated its proposal for a spot Bitcoin ETF in response to criticisms from the U.S. Securities and Exchange Commission (SEC). The amendment addresses concerns regarding accounting methods, risk valuation techniques, and surveillance-sharing arrangements. The updated application highlights Coinbase’s custodial practices, stating that the fund’s assets are held in segregated addresses on the Bitcoin blockchain and are not commingled with corporate or customer assets. It also acknowledges that certain valuation methods used by the fund are not in line with U.S. generally accepted accounting principles. The filing also includes comments on illicit transactions, stating that if cryptocurrency is used increasingly for illegal activities, the value of the ETF could decline. Additionally, it addresses concerns about Bitcoin mining and electricity consumption, noting that environmental consequences, government regulations, changing energy prices, and mining firm closures could impact the price of Bitcoin and decrease the value of the proposed fund. The update may be a response to the SEC’s request for comments on Bitcoin ETF proposals from various firms. While the SEC has not yet approved a spot Bitcoin ETF, it has approved Bitcoin futures ETFs and Ethereum futures ETFs.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	neutral
Relevance Score	0
People	Eric Balchunas
Companies	Valkyrie, BitWise, Coinbase, U.S. Securities and Exchange Commission (SEC), BlackRock (iShares), Invesco Galaxy, Van Buren Capital
Currencies	Bitcoin
Securities	None