The United States Securities and Exchange Commission (SEC) is continuing to deliberate on the approval of a spot Bitcoin exchange-traded fund (ETF) offered by ARK 21Shares. The SEC announced that it would utilize the maximum time allowed to make a decision on whether to approve or disapprove the proposed rule change that would allow ARK 21Shares’ spot BTC ETF on the Cboe BZX Exchange. This comes after the SEC previously deferred a decision until November 11, giving them more time to consider the application.
In a statement, the SEC stated that it needed a longer period to thoroughly evaluate the proposed rule change and address the concerns raised. This delay also coincides with the SEC deferring a decision on the Bitcoin ETF offering from GlobalX. It is unclear why the SEC has chosen to designate longer periods to decide the fate of these spot Bitcoin ETF applications ahead of their October and November deadlines.
With the additional 60 days granted to consider ARK 21Shares’ offering, the SEC’s final deadline for a decision will be January 10, 240 days after the initial application was filed. The next deadline for GlobalX’s ETF falls on November 21.
The filing of the spot Bitcoin ETF application followed a letter from a group of four U.S. Representatives urging SEC Chair Gary Gensler to approve a spot Bitcoin ETF immediately. These lawmakers argued that the SEC’s approval process for ETFs linked to crypto futures was inconsistent and discriminatory compared to spot investment vehicles.
It is worth noting that the SEC has not yet approved any spot Bitcoin ETF for listing on a U.S.-based exchange. Despite the SEC’s loss to Grayscale in court in August, many industry experts had speculated that the commission may reconsider pending ETF applications.
Currently, the next deadlines for spot crypto ETF applications from major firms such as BlackRock, WisdomTree, and VanEck are scheduled for October. However, the SEC has the authority to delay or extend these deadlines until March.
The decision by the SEC regarding the approval of a spot Bitcoin ETF continues to attract attention from the cryptocurrency community. As the SEC takes its time to evaluate these applications, market participants eagerly await a decision that may unlock new opportunities for investment in the crypto market.
