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The SEC has delayed its decision on Ark Invest & 21Shares’ Bitcoin ETF proposal as it seeks feedback from the public.
Recent action by the Securities and Exchange Commission (SEC) on Ark Invest and 21Shares’ spot bitcoin (BTC) ETF proposal has drawn significant attention.
Contrary to popular expectation, the SEC has not issued a clear verdict – either approval or disapproval.
As per their official documentation, the SEC has initiated a “trial” to finally rule on the future of this Bitcoin ETF. The move follows several suggestions the SEC has encountered in recent months.
Significantly, such filing does not necessarily reflect the SEC’s position on the matter. It merely underscores their commitment to a thorough review, as the document stresses that there is no final decision.
The SEC is also contacting the public for comment, which lengthens the deliberation process.
Ark Invest CEO Cathie Wood and 21Shares CEO Hany Rashwan have jointly expressed their confidence in their proposal. Their statement acknowledged the complicated process of approving a spot bitcoin product. They reiterated their commitment to providing safe, efficient, and regulated access to Bitcoin for the US market. Their commitment remains unwavering, regardless of the changing regulatory landscape.
As per SEC regulations, there is a structured time frame of 240 days to think about such Bitcoin ETFs. It includes 45, 45, 90, and 60 days, with the SEC able to either approve, deny, or request additional time for the review of the proposal. A recent request to postpone the decision by at least 90 days is followed by a similar postponement in June, setting August 13 as the next deadline.
According to insights from James Seyffart, an analyst at Bloomberg Intelligence, the next date for an SEC ruling or possible postponement regarding the ARK 21Shares Bitcoin ETF is November 11th. By Jan. 10, the SEC is expected to finalize its stance.
Given the dominant discourse on spot bitcoin ETFs, the scenario saw significant development when BlackRock, a large asset management firm, launched an application in June.
This prompted numerous companies that had previously been opposed to re-introduce similar proposals. However, Ark Invest and 21Shares unveiled their joint plans back in April, positioning themselves at the forefront of this trend.
Such a delay by the SEC was not unanticipated. Eric Balchunas, an analyst at Bloomberg Intelligence, had predicted this outcome. Ark’s Wood agreed with this view in conversation with Balchunas, adding that the SEC could approve multiple Bitcoin ETFs at the same time if they decide in their favour.
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