If you're someone who's waited patiently (or impatiently) for the launch of the ARK Space Exploration ETF (ARKX), your long wait may almost be over.
To provide a little background, ARK Invest filed to bring ARKX to market back in January. Not surprisingly, ETF investors lit up at the prospect of what would be the 8th ETF in ARK's lineup and the latest to follow the company's theme of "disruptive innovation". You could easily argue that there has never been an ETF that hasn't even launched yet that has generated this much buzz.
So, how do we know that the launch of ARKX may only be a few days away? There's some legal stuff involved here, so bear with me while I run through the details.
As I mentioned, ARK filed for the launch of ARKX back on January 13th.
There's nothing terribly exciting about an SEC filing other than the fact that it essentially announces to the world that you want to launch an ETF. Most of the filing contains all the legalese, including what ultimately becomes the summary prospectus for the fund.
The time between the filing and the approval is when the SEC reviews it to make sure everything is on the up and up and the regulatory body has no objections to how the fund would operate. In most cases, the SEC approves the fund without objection, but this is the step in the process where all bitcoin ETF filings so far have gotten hung up.
Right on the first page of the filing is the section.
It basically says that it will become effective 75 days after it was filed unless the SEC chooses to delay it (e.g. needs more time to review, has issues it wants addressed, etc.). If there are no delays, the filing becomes effective on that date.
75 days from January 13th is Monday, March 29th. That means ARKX could launch as soon as Monday.
Now, even if the ETF were to be officially approved on Monday doesn't mean it will. Some fund issuers choose to launch the minute it gets approved. Cathie Wood and ARK could very well do the same. They could also wait for as long as they want to launch it. That could include time needed to, for example, get all of their legal or marketing ducks in row before ARKX hits the marketplace.
If history is any guide, however, ARKX will probably be launched as soon as it gets approval.
With the last ETF that ARK launched, the ARK Fintech Innovation ETF (ARKF), the company filed with the SEC in November 2018. Final approval was given on January 30th, 2019 and the fund launched on February 4th, just 3 business days after approval. I imagine the same will be the case for ARKX.
Get ready! ARKX is coming soon!