The United States Securities and Exchange Commission (SEC) has once again delayed its decision on whether to approve or disapprove the spot Bitcoin exchange-traded fund (ETF) proposed by ARK Investment Management. This decision comes after the SEC opened a 21-day comment period for the ARK 21Shares Bitcoin ETF to the public.
The SEC’s delay in approving or disapproving the ETF has become a common occurrence in the industry. ARK originally filed to list the ETF back in May, which started the clock on a maximum 240-day window for the SEC to make a final decision. However, with this recent delay, the final decision may now stretch into January 2024.
One important aspect of the SEC’s decision-making process is the regulated market of significant size test. This test does not require the spot Bitcoin market to be regulated in order for the commission to approve the ARK ETF. The SEC made it clear that an underlying market for a spot commodity or currency being a regulated market would actually be an exception to the norm.
The ARK ETF is not the only one waiting for the SEC’s decision. Many firms in the United States are also applying to get their own spot crypto ETFs listed on regulated exchanges. In fact, BlackRock, the world’s largest asset management firm, recently submitted its own application in July.
To increase the chances of approval, a number of firms have amended their existing applications to include Coinbase, the popular cryptocurrency exchange, as a surveillance-sharing partner. This came after reports surfaced that SEC officials may be more open to accepting an ETF if it has such partnerships in place.
The delay in the SEC’s decision on the ARK ETF is an indication of the regulatory challenges the crypto industry is currently facing. The SEC has been cautious about approving spot crypto ETFs due to concerns about market manipulation and investor protection. The agency wants to ensure that there is a robust and regulated market for spot Bitcoin before approving any ETFs.
However, the industry remains optimistic that the SEC will eventually approve a spot Bitcoin ETF. The approval of such a product could bring more institutional investors into the crypto market and potentially lead to increased adoption of digital assets.
In conclusion, the SEC’s decision on the ARK spot Bitcoin ETF has been delayed once again. The 21-day comment period has been opened to the public, allowing stakeholders to voice their opinions on the matter. This delay reflects the cautious approach taken by the SEC regarding crypto ETFs. The industry is hopeful that a regulatory framework will be established, allowing for the approval of spot Bitcoin ETFs in the near future.
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