The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on a major spot Bitcoin exchange-traded fund (ETF), creating further uncertainty for investors. This setback pertains specifically to the ARK 21Shares Bitcoin ETF, which has been eagerly anticipated by the cryptocurrency community and financial institutions alike.
In a filing dated September 26, the SEC announced that it would defer its decision on the ARK 21Shares Bitcoin ETF. The deferral is attributed to the fact that the Cboe BZX, a major exchange, proposed a rule change in order to facilitate the approval and listing of this specific ETF. While the proposal was initially submitted on April 25, 2023, it was not published for comment until May 15. The SEC subsequently designated a longer approval period on June 15, extending the deadline for its decision. Despite the initial expectation for a verdict by November 11, the SEC has now pushed the decision to January 10, 2024, citing the option to extend the approval deadline by an additional 60 days.
The delay in the approval of the ARK 21Shares Bitcoin ETF, along with the simultaneous postponement of a decision on GlobalX’s Bitcoin ETF, raises concerns about the SEC’s approach to similar pending applications. Notably, both the ARK and GlobalX ETFs were filed by Cboe BZX and pertain to proposed listings and rule changes. This development has significant ramifications as it may foreshadow the SEC’s future treatment of numerous other applications from asset management firms.
ARK Invest, the company behind the ARK 21Shares Bitcoin ETF, submitted its filing much earlier than many other applicants. This has resulted in a limited timeline for the SEC to delay its decision on the ARK ETF, compared to other applications. Despite the anticipated delay, ARK Invest CEO and CIO, Cathie Wood, expressed optimism that the SEC will ultimately approve several funds. In fact, she previously suggested in August that a delay was likely for her company’s filing.
Adding further pressure for the approval of a Bitcoin ETF, several U.S. lawmakers have recently written a letter to SEC chairman Gary Gensler and several commissioners. The letter urges the SEC to expedite the approval process and give the green light to a Bitcoin ETF. This call from lawmakers underscores the growing recognition of cryptocurrencies as a legitimate asset class and the demand for regulated investment opportunities in this space.
The SEC’s decision to defer the approval of the ARK 21Shares Bitcoin ETF, as well as the postponement of the GlobalX Bitcoin ETF, adds to the uncertainty surrounding the regulation of cryptocurrency investment products. The impact of these delays extends beyond the specific ETFs in question, as they could set a precedent for the SEC’s handling of future applications. As the deadline nears, the cryptocurrency industry eagerly awaits the SEC’s final verdict, hoping for a positive outcome that will pave the way for increased mainstream adoption of Bitcoin and other cryptocurrencies.
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