The Securities and Exchange Commission (SEC) of the United States has once more postponed making a judgement about the spot Bitcoin ETF that ARK Investment Management and 21Shares have proposed. The SEC said that it will “institute proceedings” to decide whether to approve or deny the Bitcoin ETF in a file made public on Friday and a notice dated August 11, 2023, initiating a 21-day public comment period. The next decision or postponement is scheduled for November 11, 2023, following a string of postponements by the SEC. The 240-day total consideration time, which is divided into four segments of 45, 45, 90, and 60 days, will end on January 10, 2024. In June, the SEC had already postponed making a decision about this anticipated product.
Although they are both very confident, the CEOs of ARK Invest and 21Shares stated in a joint statement that they recognise that the process will take time before a spot BTC product can be approved: “While we are highly confident, we understand that the process for approving a spot BTC product will not happen overnight.” The complex regulatory environment that surrounds bitcoin goods is reflected in their mood.
The SEC’s decision to postpone is subject to special approval procedures. An applicant who wants to list on the Cboe BZX Exchange must show proof of a “comprehensive surveillance-sharing agreement in place with a regulated market of significant size.” Similar ideas have previously been rejected by the SEC due to concerns that they would not be “designed to prevent fraudulent and manipulative acts and practises” or safeguard investors.
Recent months have seen a rise in the topic surrounding spot Bitcoin ETFs due to applications from other companies including BlackRock and changes to earlier proposals to add Coinbase as a partner in surveillance. Despite this, the SEC has yet to approve any spot crypto ETF applications for listing shares in the United States as of August 11. This is despite the fact that it began approving investment vehicles tied to BTC futures in October 2021.
The delay had been expected by industry experts. Both Wood of ARK and Eric Balchunas of Bloomberg Intelligence predicted that the SEC would delay making its choice. According to Wood’s forecast and a broader trend towards eventual acceptance of such products, the commission may later approve numerous spot BTC ETFs at once.
The SEC is taking a cautious approach to regulating Bitcoin ETFs, as seen by its persistent caution and the beginning of a public comment period. The cryptocurrency community and investors will be closely monitoring any new developments in this protracted regulatory crisis with the next decision date set for November 11.