Giovanni Russo The United States Securities and Exchange Commission (SEC) has recently made public its decision to defer the final ruling on the Ark 21shares Bitcoin Exchange-Traded Fund (ETF). The regulatory body has designated January 10, 2024, as the conclusive date on which it will either approve or deny the proposed rule amendment.
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SEC Extends Timeline for Decision on Pair of Spot Bitcoin ETFs
The United States’ principal securities regulator released a statement elaborating its resolution to extend the time frame for its evaluation on the Ark 21shares Bitcoin ETF—a financial instrument aimed at being publicly traded. This ETF application was collaboratively submitted by Cboe BZX Exchange, 21shares, and Ark Invest on April 25, 2023.
This particular ETF application is among a slew of other spot Bitcoin ETF applications awaiting SEC’s judgement. Leading industry firms such as Invesco, Blackrock, Fidelity, Vaneck, Valkyrie, Wisdomtree, and Franklin Templeton have also submitted their respective applications. It should be emphasized that the SEC had already deferred its decisions on seven such applications, including the Ark 21shares Bitcoin ETF, as of August 31, 2023.
Following an exhaustive analysis of the submitted proposal and ensuing amendments, the SEC conveyed on Tuesday its decision to lengthen the assessment period to ensure an all-encompassing review. “The Commission deems it prudent to allocate an extended duration for the issuance of an order that either approves or disapproves the proposed rule alteration, in order to afford adequate time for the consideration of the proposed rule change, as further modified by Amendment No. 3, and to fully address the concerns it raises,” clarified the SEC.
Bloomberg Intelligence ETF analyst James Seyffart expressed his surprise on Tuesday, stating, “I find it unexpected that the SEC moved so swiftly on Ark and 21Shares. My supposition is that the agency is concerned about an impending government shutdown and aims to preemptively address that scenario.” Additionally, the SEC has also postponed its final verdict on the spot Bitcoin ETF application put forth by Global X in association with its listing partner Cboe BZX.
We invite you to share your insights and viewpoints on the SEC’s recent postponements concerning the two spot Bitcoin ETF applications in the comments section below.
Frequently Asked Questions (FAQs) about SEC Bitcoin ETF Delay
The U.S. Securities and Exchange Commission (SEC) has designated January 10, 2024, as the conclusive date for making a decision on the Ark 21shares and Global X Bitcoin spot ETFs.
The application for the Ark 21shares Bitcoin ETF was jointly submitted by Cboe BZX Exchange, 21shares, and Ark Invest on April 25, 2023.
Are there other companies waiting for SEC approval for spot Bitcoin ETFs?
Yes, leading industry firms such as Invesco, Blackrock, Fidelity, Vaneck, Valkyrie, Wisdomtree, and Franklin Templeton have also submitted their respective applications for spot Bitcoin ETFs.
Has the SEC previously postponed decisions on Bitcoin ETFs?
Yes, the SEC had already deferred its decisions on seven such applications, including the Ark 21shares Bitcoin ETF, as of August 31, 2023.
What reason did the SEC provide for the delay?
The SEC aims to prolong the evaluation period to guarantee a comprehensive review. The commission stated that the extension allows for adequate time to consider the proposed rule change and fully address the concerns it raises.
What did Bloomberg Intelligence ETF analyst James Seyffart say about the delay?
James Seyffart expressed his surprise at the SEC’s decision to extend the evaluation period for Ark 21shares. He speculates that the SEC is possibly concerned about an impending government shutdown and is taking preemptive action.
Was Global X’s Bitcoin ETF application also affected by the SEC’s recent decision?
Yes, in addition to the Ark 21shares filing, the SEC has also postponed its final verdict on the spot Bitcoin ETF application submitted by Global X in association with its listing partner Cboe BZX.
More about SEC Bitcoin ETF Delay
- SEC Official Announcement
- Ark Invest
- Cboe BZX Exchange
- Invesco
- Blackrock
- Fidelity
- Vaneck
- Valkyrie
- Wisdomtree
- [Franklin Temple
4 comments
Extending review for a thorough check makes sense. Regulations are crucial.
Lots of big players want in on bitcoin ETFs. SEC taking time to review. smart.
Ark Invest, Cboe, 21shares, big names in this game. Hope SEC approves!
Gov shutdown worries might be valid. SEC’s move is cautious, I guess.