SEC continues to avoid making a decision on spot Bitcoin ETFs.
The United States Securities and Exchange Commission (SEC) has once again opted for a postponement in deciding on the Bitcoin ETF proposal by ARK Invest and 21Shares.
With an additional 60-day window, the final date for the SEC's verdict is now pushed to January 10th, 2024.
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On September 26th, the SEC issued a notice stating that it would require more time to fully evaluate ARK Invest and 21Shares' application for a spot Bitcoin ETF to be listed on the Cboe BZX Exchange.
The commission emphasized the necessity for a comprehensive review, stating:
The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change <...> and the issues raised therein.
Notably, the SEC had previously delayed its decision on this matter on August 11th, setting a November 11th deadline. This latest extension marks 240 days since the initial application was submitted.
Interestingly, this announcement came on the same day the SEC delayed a decision concerning GlobalX's Bitcoin ETF, whose next decision deadline is November 21st.
The delays have generated controversy, particularly after four US Representatives sent a letter urging SEC Chairman Gary Gensler to approve a spot Bitcoin ETF immediately. The lawmakers accused the SEC of employing "inconsistent and discriminatory standards" by approving ETFs connected to cryptocurrency futures while hesitating on spot trading ETFs.
The SEC's record in approving spot BTC ETFs remains unblemished; not a single one has been given the green light for listing on a US-based exchange to date. Many industry observers had anticipated that the commission might be more inclined to approve pending ETF applications after it lost a case to Grayscale in August.
Moreover, looming deadlines for spot cryptocurrency ETF applications from major financial firms like BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck, and Fidelity are coming up in October. It remains to be seen whether the SEC will further extend these deadlines, possibly pushing them into March 2024.
The SEC's decision to postpone the ARK 21Shares Bitcoin ETF ruling to January 10th adds another chapter to the ongoing saga of regulatory deliberation over cryptocurrency investment vehicles. With major firms still waiting in line for a decision on their applications, cryptocurrency enthusiasts and industry experts will closely watch the SEC's future moves.
