One notable adjustment pertained to the Net Asset Value (NAV) calculations, which ARK Invest acknowledged were not aligned with Generally Accepted Accounting Principles (GAAP), the accounting standard endorsed by the SEC.
Eric Balchunas, an ETF analyst at Bloomberg, recently took to the social media platform X to revealthat ARK Invest’s latest amendment to its spot Bitcoin Exchange Traded Fund (ETF) filing may signify a positive step toward future approvals for a Bitcoin ETF.
It’s worth noting that the Securities and Exchange Commission(SEC) had sent comments and questions to issuers a few weeks prior, seeking clarifications and adjustments to their S-1 documents.
In response, ARK Invest and 21Shares submittedan updated application for their spot Bitcoin ETF on Wednesday, which included additional information detailing the fund’s operational processes, such as asset custody and valuation methodologies.
Balchunas, shared his perspective on these developments, stating that the amendments to the filing “mean ARK got the SEC’s comments and has dealt with them all, and now put the ball back in the SEC’s court.” Balchunas went on to express his optimism, referring to these changes as “a good sign” and a clear indicator of “solid progress”.
Similarly, James Seyffart, another ETF analyst at Bloomberg, suggestedthat this clarification demonstrates open communication between ARK Invest, 21Shares, and the SEC, a positive indication for future approval. While ARK’s responsiveness is a positive development, it does not necessarily guarantee immediate approval. Balchunas noted that the SEC might engage in further back-and-forth discussions on specific details, and the regulatory process may take time.
It is, however, crucial to recognize that the SEC’s rigorous scrutiny is part of its mandate to ensure investor protection and market integrity.
Key Changes in ARK’s Updated Prospectus
One notable adjustment pertained to the Net Asset Value (NAV) calculations, which ARK Invest acknowledged were not aligned with Generally Accepted Accounting Principles (GAAP), the accounting standard endorsed by the SEC.
Another critical change in the updated prospectus involves the handling of assets. The document mentions that the Trust’s assets held with the Custodian are kept in segregated accounts on the Bitcoin blockchain, often referred to as “wallets”. These assets are explicitly mentioned as not commingled with corporate or other customer assets.
This separation is a clear response to concerns regarding the safekeeping of assets in the crypto space. It demonstrates ARK’s commitment to ensuring the security and transparency of its Bitcoin holdings.
Scott Johnsson, general partner at Van Buren Capital, also weighed in on the amended filing. He highlighteda new addition in the filing, which addressed concerns related to the potential negative impacts on the ETF’s value.
Specifically, it mentioned the risk of Bitcoin being used for illegal purposes and the environmental implications of Bitcoin mining. Johnsson opined that ARK’s amendments demonstrate a willingness to cooperate with the SEC rather than create unnecessary obstacles through a disclosure review.
nextBlockchain News, Cryptocurrency News, Funds & ETFs, Market News, News
Author Benjamin Godfrey
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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ChargePoint stock comes under severe selling pressure as the company liquidates equity for another major fundraise.
On Wednesday, October 11, EV charging network operator ChargePoint Holdings (NYSE: CHPT) announced its plans to raise a staggering $232 million through the stock sale. This was enough to send the ChargePoint stock spiraling downwards by 15%.
ChargePoint announced that a consortium of institutional investors will acquire $175 million in fresh shares. The firm further revealed it secured an additional $57 million in the current fiscal quarter through its existing “at-the-market” stock offering program. Thus, the total capital raised is $232 million.
In a separate development, ChargePoint successfully garnered $57 million in net proceeds during the third quarter of 2024 through the ATM facility. Speaking on the development, Rex Jackson, CFO of ChargePoint said:
“We are pleased to secure $232M in funding this quarter, which supports our stated goal of adjusted EBITDA profitability in the fourth fiscal quarter of next year. These raises and our recently announced $150M revolving credit facility are consistent with our announced capital strategy to bolster our balance sheet. We have no further plans to access the ATM.”
He further added that the new funds along with the recently secured credit line will also support the company’s role into early 2025.
ChargePoint on Convertible Notes
ChargePoint has also announced a modification to the terms of a prior $300 million convertible notes deal. This change extends the company’s repayment timeline by a year but comes with increased interest payments.
In a separate agreement, ChargePoint, along with the lead investor in the Notes, has entered into a binding term sheet to revise the Notes. These revisions include an extension of the maturity from April 1, 2027, to April 1, 2028.
The changes also involve an increase in the cash coupon from 3.5% to 7% per year, an adjustment in the payment in kind coupon from 5% to 8.5% per year, and an alteration of the conversion price from $24.03 per share to $12.00 per share. The financial advisory firm Evercore provided exclusive advisory services to ChargePoint in this matter.
It’s worth noting that ChargePoint’s shares closed at $4.49 on Tuesday, marking a decline of approximately 53% since the start of 2023. Amid the changing macro conditions, EV companies have been facing challenges recently with the road to profitability delayed even further.
Read other business newson Coinspeaker.
nextBusiness News, Market News, News, Stocks, Technology News
Author Bhushan Akolkar
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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While Standard Chartered gives a bullish outlook on Ethereum, JPMorgan Chase analysts ask to maintain caution amid declining Ethereum network activity.
Amid the current macro developments, the world’s second-largest cryptocurrency Ethereum has come under significant selling pressure. Earlier this week, ETHprice came crashing under $1,600 with the Ethereum Foundation selling $2.7 million worth of ETH. Despite this, some of the big market players continue to remain bullish on Ethereum. According to a recent report by multinational bank Standard Chartered, the price of Ethereum is projected to potentially reach $8,000 by the conclusion of 2026.
This would mark a fivefold rally from the current price of $1,600. Speaking on the development, Geoffrey Kendrick, Head of Crypto Research at Standard Chartered said:
“Ethereum’s established dominance in smart contract platforms, along with emerging uses in gaming and tokenization, has the potential to push ETH to the $8,000 level by end-2026.”
The report highlights the growth of Ethereum’s layer 2 scaling solutions as a possible driving factor. Anticipated Ethereum upgrades, such as proto-danksharding, have the potential to reduce transaction costs on these networks, solidify Ethereum’s dominance in the realm of smart contracts, and potentially boost its value.
Geoff Kendrick, the report’s author, considers the $8,000 target as an initial milestone on the path toward the bank’s previously stated long-term valuation range of $26,000 to $35,000 for Ethereum. Although this long-term projection assumes the emergence of future use cases and revenue streams, Kendrick believes that real-world adoption in sectors like gaming and asset tokenization could help make this a reality.
Notably, Kendrick had also set a $120,000 price target for Bitcoin by the close of 2024 earlier this year. Bitcoin’s current trading price is approximately $27,000.
Ethereum Investors Need to Maintain Caution
While the long-term outlook is bullish for Ethereum, some Ethereum network developments suggest a poor show. After the April Shanghai upgrade, the Ethereum network encountered a notable 12% reduction in daily transactions, a concern highlighted by analysts at JPMorgan Chase, led by Nikolaos Panigirtzoglou.
This decline in network activity also coincided with a significant 20% decrease in daily active addresses. Additionally, there was an 8% drop in the total value locked on the Ethereum network. The launch of nine Ether futures ETFs also failed to deliver robust performance.
#Ethereumis moving within a steady range. Interestingly, the TD Sequential presented a buy signal at the lower end of this range, suggesting $ETHcould rebound to $1,630.
But be cautious – if #ETHcloses below $1,530, the bullish outlook will be invalidated. pic.twitter.com/hvwoyDy7AB
— Ali (@ali_charts) October 11, 2023
Popular crypto analyst Ali Martinez said that Ethereum is currently trading within a stable range. Notably, the TD Sequential indicator has generated a buy signal near the lower boundary of this range, indicating a potential rebound to $1,630 for $ETH. However, it’s important to exercise caution. If Ethereum closes below $1,530, it may invalidate the bullish outlook.
nextBlockchain News, Cryptocurrency News, Ethereum News, News
Author Bhushan Akolkar
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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