Key Points:
- SEC extends decision deadline for ARK 21Shares Bitcoin ETF to January 10th.
- Multiple Bitcoin ETF applications, including Global X Bitcoin Trust, also delayed.
- Ongoing regulatory concerns and market manipulation fears affecting ETF approval.
The US Securities and Exchange Commission (SEC) has once again announced a postponement in its decision regarding the ARK 21Shares Bitcoin ETF, extending the deadline into the following year with a new target date of January 10th.
This delay comes shortly after a bipartisan group of legislators urged SEC Chair Gary Gensler to expedite the approval of a spot Bitcoin exchange-traded fund (ETF). In its official statement, the SEC cited the necessity for a more comprehensive assessment of the proposed rule change as the reason for the extension.
This delay isn’t confined to the ARK 21Shares Bitcoin ETF alone. The SEC has also pushed back the decision deadline for the proposed Global X Bitcoin Trust to November 21st, indicating a potential trend of delays for spot Bitcoin fund applications.
This postponement follows a prior delay when, in response to the initial proposal by ARK Invest and 21Shares, the SEC solicited additional written comments. Initially, the SEC had set an August 13th deadline to either approve, disapprove, or initiate proceedings concerning the fate of the application.
Cathie Wood, CEO of Ark Invest, had foreseen the initial delay, suggesting that the SEC might greenlight multiple Bitcoin ETFs simultaneously when it decides to approve this financial product.
Numerous spot Bitcoin ETF applications from prominent industry players like BlackRock, Fidelity, VanEck, and Invesco are currently under SEC review. The ARK 21Shares Bitcoin ETF had been a prominent contender among these applications.
Additionally, decision deadlines for other Bitcoin-related funds have also been extended. Deadlines for BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Trust, the VanEck Bitcoin Trust, the WisdomTree Bitcoin Trust, and the Invesco Galaxy Bitcoin ETF have all been extended to October 17th. Meanwhile, the Valkyrie Bitcoin Fund’s deadline has been moved to October 19th, and the Bitwise Bitcoin ETP Trust’s decision deadline was last postponed until October 16th.
To date, the SEC has not granted approval for any spot Bitcoin ETF, citing concerns related to potential fraud and market manipulation. Nevertheless, the SEC permitted the first Bitcoin futures ETF to commence trading in 2021.
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