The United States Securities and Exchange Commission (SEC) has announced that it will take additional time to reach a decision on a spot Bitcoin (BTC) exchange-traded fund (ETF) offering from ARK 21Shares. In a notice released on September 26, the SEC stated that it would designate a longer period to consider whether to approve or disapprove of a proposed rule change that would allow ARK 21Shares’ spot BTC ETF on the Cboe BZX Exchange. This decision follows a previous delay on August 11, which gave the SEC until November 11 to make a decision.
The SEC justified the extended timeline by stating that it required more time to thoroughly evaluate the proposed rule change and the issues raised in the application. The SEC also deferred a decision on the Bitcoin ETF offering from fund manager GlobalX on the same day. The reasons for the SEC’s choice to designate longer periods to evaluate these spot Bitcoin ETF applications well before their next deadlines in October and November are unclear, as the commission typically waits until shortly before a deadline to announce a delay.
With the additional 60 days to consider ARK 21Shares’ offering, the SEC’s final deadline for this ETF will be January 10, marking 240 days since the initial application was filed. The next deadline for GlobalX’s ETF will be on November 21.
The delay by the SEC comes after a group of four U.S. Representatives sent a letter to SEC chair Gary Gensler, urging him to approve a spot Bitcoin ETF without further delay. The letter accused the SEC of employing inconsistent and discriminatory standards by approving ETFs linked to crypto futures but not spot investment vehicles.
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Despite the mounting pressure, the SEC has yet to approve any spot BTC ETF for listing on a U.S.-based exchange. It was anticipated by industry experts that the SEC would take a fresh look at pending ETF applications following its loss to Grayscale in court in August.
As of now, the next set of deadlines for spot crypto ETF applications from major firms such as BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck, and Fidelity are scheduled for October. However, the SEC has the authority to delay or extend these deadlines until March.
It remains to be seen when the SEC will ultimately make a decision on these ETF applications and whether it will approve the first-ever spot Bitcoin ETF in the United States. The outcome of these decisions will have significant implications for the crypto industry, as a Bitcoin ETF would provide a regulated and accessible way for investors to gain exposure to the cryptocurrency market.
In the meantime, industry participants and stakeholders are closely monitoring the regulatory developments and advocating for the approval of a spot Bitcoin ETF. These ETFs could potentially attract significant institutional and retail investor interest, further legitimizing cryptocurrencies in the traditional financial system.
In conclusion, the SEC’s decision to extend the evaluation period for ARK 21Shares’ spot Bitcoin ETF, along with the deferral of a decision on GlobalX’s ETF, has generated anticipation in the crypto industry. As the deadlines for other major firms’ spot crypto ETF applications approach, the industry eagerly awaits the SEC’s rulings, which will have far-reaching implications for the future of cryptocurrencies in the United States.
