The U.S. Securities and Exchange Commission (SEC) recently announced that it would be extending its decision on a major spot Bitcoin exchange-traded fund (ETF), causing further delays and uncertainty in the market. This setback specifically affects the ARK 21Shares Bitcoin ETF, which is eagerly awaited by industry players. The delay in the SEC’s decision has raised concerns among investors and has significant implications for the future of the crypto market.
The SEC’s filing on September 26 revealed that it has deferred its decision on the ARK 21Shares Bitcoin ETF. The proposal was initially submitted by Cboe BZX, a leading options exchange, on April 25, 2023. However, it was not published for public comment until May 15, significantly extending the approval process. The SEC then designated a longer approval period on June 15, 2023, extending the deadline for issuing an approval or rejection.
Extended Approval Deadline
According to the filing, the SEC has the authority to extend the approval deadline by an additional 60 days. Consequently, the agency has postponed its decision on the ARK 21Shares Bitcoin ETF to January 10, 2024. This further delay has added to the uncertainty surrounding the ETF and has caused concern among investors and industry participants.
Implications for Other Applications
The SEC’s reluctance to provide a timely decision on the ARK 21Shares Bitcoin ETF and other similar applications has significant implications for the market. Many asset management firms submitted filings for spot Bitcoin ETFs after BlackRock’s mid-June application. However, the SEC can delay decisions on some of these applications until as late as March 2024, given the timing of their submissions.
Expectations for Approval
Despite the delays, there is a prevailing expectation that the SEC will eventually approve several Bitcoin ETFs. ARK Invest CEO and CIO Cathie Wood, in particular, has expressed her belief that the SEC will approve her company’s filing. Wood’s optimism stems from the fact that the filing was submitted considerably earlier than other applications, providing the SEC with less room to delay its decision.
In a recent development, several U.S. lawmakers have written a letter to SEC Chairman Gary Gensler and several commissioners, urging them to approve a Bitcoin ETF. This letter highlights the growing support for cryptocurrency investments and acknowledges the potential benefits of an ETF in the market. It remains to be seen how this plea will influence the SEC’s decision, but it underscores the importance of a swift resolution.
The continued delays in the SEC’s decision on the ARK 21Shares Bitcoin ETF and other related applications have raised concerns and uncertainty in the market. The extended approval deadlines and the SEC’s reluctance to provide a clear timeline have created a sense of unease among investors. However, industry experts remain hopeful that the SEC will eventually approve several Bitcoin ETFs, paving the way for increased cryptocurrency adoption and investment opportunities. As the market eagerly awaits a decision, it is crucial for regulators to strike a balance between ensuring investor protection and fostering innovation in the rapidly evolving crypto space.