- This is their third attempt to get regulatory approval
- Companies want to take advantage of market growth
Investment firms 21Shares and Ark Investment have filed their third bid to launch a bitcoin spot exchange-traded fund (ETF). Co-founder and head of 21Shares Rashwan told Bloomberg News.
“We’ve seen increased demand from American investors for American-made products, especially in the last few months. Bank failures, as well as international crypto-explosions contributed to this.
That’s why we are happy to promote cryptocurrency in compliance with regulatory requirements.”
ETFs are financial instruments (exchange-traded products) whose behavior depends on changes in the price of the underlying instrument.
For example, there are ETFs of stock indices, commodities, stock baskets or other financial instruments.
The price of such an asset will go down or up, depending on the behavior of the underlying instrument.
It should be noted that 21 Shares recently introduced another exchange instrument – Bitcoin ETP.. It trades on the Nasdaq Dubai International Financial Exchange under the ticker ABTC.
Previously, 21Shares and Ark Investment twice applied to the U.S. SEC to open a joint bitcoin-ETF, but the regulator rejected them..
The SEC also blocked similar applications from other local companies. But brands don’t give up and make new attempts. Especially now, when the market has started to show growth after the long cryptozyma.