The United States Securities and Exchange Commission (SEC) has declared a delay of its decision to approve Ark 21 Shares spot Bitcoin exchange-traded fund (ETF) until the new year, extending to the maximum deadline.
Ark Invest and 21 Shares joined forces to apply for the Ark 21Shares Bitcoin ETF, persistently advocating for its approval for more than two years.
SEC Delays Ark21Shares Bitcoin ETF Decision to the Final Deadline
In a recent court filing, the SEC outlined its decision to postpone approval of Ark Invest and 21Shares’ spot Bitcoin ETF application on the Cboe BZX Exchange until January 10, 2024.
The proposed rule change had been made available for comment on May 15. The SEC utilized its 180-day extension window, which runs until November 11.
However, the SEC is eligible for an additional 60-day extension, which would take them into the new year. It decided to take up the option early by making the announcement today.
“The Commission, pursuant to Section 19(b)(2) of the Act designates January 10, 2024, as the date by which the Commission shall either approve or disapprove the proposed rule change, as modified by Amendment No. 3.”
If the proposed rule undergoes modification, it will enable the listing of Bitcoin ETF products on the stock exchange.
On the same day, Congressman Tom Emmer, the majority whip of the United States House of Representatives, teamed up with Congressman Ritchie Torres to send a letter urging SEC Chair Gary Gensler to approve a Bitcoin ETF:
“We write to ensure the Securities and Exchange Commission (SEC) does not continue to discriminate against spot Bitcoin exchange-traded products (ETPs). The SEC is responsible for making certain that products comply with investor protection standards are made available to investors.”
Bitcoin’s Price has not swayed significantly since the SEC made the announcement. It has dropped approximately 1% over the past 24 hours.
At the time of publication, Bitcoin’s price is $26,182.
SEC Under Pressure for Bitcoin ETF Decision
On August 7, the SEC had seven days to either approve, deny, or request more time on Ark Invest’s Bitcoin ETF. The two firms initially approached the SEC for approval in 2021.
Cathie Wood, the CEO of Ark Invest, has recently expressed her views on the ongoing decision. She has predicted that the SEC would opt to approve multiple ETF applications simultaneously:
“Because most of these will essentially be the same, it will come down to marketing, communicating, the message.”
Meanwhile, reports have widely covered the SEC’s continuous delays in deciding on the other applicants.
On August 31, in seven separate filings, the SEC stated that it requires extra time to review the proposed rule change.
The seven applicants include the world’s largest asset manager, BlackRock. Additionally, it affects VanEck, WiseOrigin, Invesco Galaxy, WisdomTree, Bitwise, and Valkyrie Digital Assets.
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