In an ongoing review of spot Bitcoin exchange-traded funds (ETFs), the U.S. Securities and Exchange Commission (SEC) recently confirmed an extended decision-making period for ARK 21Shares’ proposal. This decision comes after a Sept. 26 announcement, where the commission highlighted its intent to provide ample time for a comprehensive review.
Historical Spot Bitcoin ETF Delays and Their Implications
Traditionally, the SEC often waited until just days before a looming deadline to announce any deferments. That makes their recent move to announce delays weeks in advance for the ARK 21Shares’ and GlobalX’s Bitcoin ETF offerings somewhat unconventional.
ARK 21Shares’s ultimate deadline is now slated for Jan. 10, extending their wait to 240 days post their initial application. Conversely, GlobalX faces a forthcoming deadline on Nov. 21.
While the SEC has yet to green-light any spot BTC ETF on a U.S. exchange, this hasn’t stopped speculation within the industry. Notably, after the SEC’s courtroom setback against Grayscale in August, experts opined that the commission might revisit existing ETF applications.
Upcoming Reviews for Other Major Players
October promises to be a significant month, as spot Bitcoin ETF applications from leading institutions such as BlackRock, WisdomTree, Valkyrie, Bitwise, VanEck, Fidelity, and Invesco Galaxy await the commission’s review. It’s important to note that the SEC possesses the authority to further delay or extend these October deadlines, possibly pushing them out as far as March.
Amidst this backdrop, a quartet of U.S. Representatives recently penned a letter to SEC chair Gary Gensler. Their primary call to action? Immediate approval of a spot Bitcoin ETF. The representatives expressed concerns over what they perceived as the SEC’s “inconsistent and discriminatory standards”. They point out the commission’s tendency to favor ETFs associated with crypto futures over spot investment vehicles.
This delay indicates the SEC will ultimately decline the Ark 21Shares ETF proposal. Delaying tactics are commonly used by the agency to annoy the cryptocurrency community.
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