ARK Invest, in collaboration with 21Shares, has made a third attempt to secure approval for a spot Bitcoin ETF, this time incorporating a surveillance sharing agreement into their application. This move aligns their application with that of BlackRock's recent filing. The modifications include a surveillance sharing agreement with the Chicago Mercantile Exchange (CME) futures markets and a likely crypto exchange, possibly Coinbase, according to Bloomberg ETF analyst Eric Balchunas.

ARK's updated filing propels it to the front of the line in the race for the first Bitcoin ETF in the United States. The investment firm, led by Cathie Wood, and European asset manager 21Shares had previously sought approval for a spot BTC ETF twice before, in 2021 and 2022, but were denied on both occasions. The regulator cited non-compliance with the rules of practice and Exchange Act requirements for listing a financial product as the reason for the rejections.

James Seyffart, a Bloomberg Intelligence ETF analyst, confirmed in a recent interview that ARK's application is currently leading the pack for a Bitcoin ETF. He noted that 21Shares, ARK, and Cboe (Chicago Board Options Exchange) are first in line as their next SEC decision date is August 13, 2023, while a date for other 19b-4 applications, like BlackRock's, has not been set.

However, even if ARK secures approval in the coming weeks, the BTC ETF saga may not conclude, as it still needs to designate a crypto exchange to enter into a surveillance-sharing agreement. Coinbase is a strong contender for this role, but it has already teamed up with BlackRock to become a Bitcoin custodian, should approval be granted.

Balchunas further speculated on Twitter whether BlackRock would even permit Coinbase to enter into an SSE agreement that would aid another issuer in beating them to market. If so, ARK would need to find another crypto exchange to use. BlackRock joined the queue of applicants on June 16, sparking a flurry of similar initiatives on Wall Street, particularly from previous applicants. Financial investment firms such as Valkyrie, WisdomTree, and Invesco have refiled for spot Bitcoin ETFs in recent days.

ARK Invest was contacted for comment but did not respond immediately.