The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the ARK 21Shares Bitcoin exchange-traded fund (ETF) and GlobalX’s Bitcoin ETF. This filing comes after the Cboe BZX proposed a rule change for the approval and listing of these ETFs. The delays in the decision-making process have raised concerns about the SEC’s treatment of pending applications and its stance towards cryptocurrency ETFs.
The SEC deferred the approval of the ARK 21Shares Bitcoin ETF and GlobalX’s Bitcoin ETF in a filing on September 26. The regulator had designated an extended approval period on June 15, pushing the decision date to November 11, 2023. However, the SEC stated in its recent filing that it has the authority to further extend the deadline by an additional 60 days, moving the decision date to January 10, 2024. This delay indicates the SEC’s cautious approach towards Bitcoin ETFs and its desire for more time to evaluate the proposals.
The postponement of the ARK 21Shares Bitcoin ETF and GlobalX’s Bitcoin ETF decisions is significant as it sets a precedent for other pending applications. Many asset management firms submitted similar filings for spot Bitcoin ETFs following BlackRock’s application in mid-June. However, the SEC can delay decisions on these applications until as late as March 2024. This prolonged decision-making process creates uncertainty for the cryptocurrency industry and hampers the growth of Bitcoin ETFs.
ARK Invest CEO and CIO Cathie Wood anticipated the SEC’s decision delay on her company’s filing. In August, Wood suggested that the SEC would likely take more time to evaluate the ARK 21Shares Bitcoin ETF. While the delay was expected, Wood remains hopeful that the SEC will eventually approve multiple Bitcoin funds. The early submission of ARK’s filing in comparison to other asset management firms gives the SEC a limited window to delay its decision on the ARK ETF.
To push the SEC towards approving a Bitcoin ETF, several U.S. lawmakers have written a letter addressed to chairman Gary Gensler and several commissioners. These lawmakers advocate for the approval of a Bitcoin ETF and highlight the growing demand for such investment vehicles. The letter emphasizes the need for regulatory certainty in the cryptocurrency market and the potential benefits of a Bitcoin ETF for investors.
The SEC’s decision to delay the approval of the ARK 21Shares Bitcoin ETF and GlobalX’s Bitcoin ETF raises questions about its stance on cryptocurrency ETFs. The prolonged decision-making process has created uncertainty and hindered the growth of Bitcoin ETFs. The outcome of these decisions will likely have a significant impact on the future of the cryptocurrency industry and the availability of investment opportunities for retail and institutional investors.
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