The world of cryptocurrency investment is often a rollercoaster ride, and the latest twist comes from the SEC. They’ve decided to put the brakes on the ARK 21Shares Bitcoin ETF, and the reason? Well, they say they need more time to ponder whether to give it the green light or not.
A Waiting Game
The proposed rule change would pave the way for the ARK 21Shares Bitcoin ETF to find its home on the Cboe BZX Exchange, a move that many in the crypto sphere have been eagerly anticipating. However, this isn’t the first time this decision has been delayed. Back on August 11, the SEC hit the pause button and set a new deadline for themselves, November 11, to make up their minds.
In their statement, the SEC explained, “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.”
Interestingly, on the same day, the SEC also opted to postpone a decision regarding a Bitcoin ETF proposal from GlobalX. What’s unclear is why they’ve chosen to take more time than usual to deliberate over other Bitcoin ETF applications slated for October and November.
Typically, the SEC tends to make these types of announcements just a few days before the deadline, keeping everyone on their toes. But this time, they’ve granted an additional 60 days to scrutinize the ARK 21Shares proposal, pushing their final decision date to January 10. This decision comes a full 240 days after ARK 21Shares first submitted their application, with the next deadline for GlobalX’s ETF proposal looming on November 21.
A Plea for Clarity
The SEC’s handling of Bitcoin ETFs hasn’t gone unnoticed. A quartet of U.S. Representatives recently penned a letter to SEC Chair Gary Gensler, urging a swift approval of a Bitcoin ETF that deals directly with the actual digital coins, not futures. They’ve raised concerns about what they see as differing and potentially unfair rules when it comes to ETFs linked to cryptocurrency futures versus those tied to tangible Bitcoin investments.
As the crypto community and investors continue to watch and wait, the SEC’s decisions take on greater significance, influencing the trajectory of the entire cryptocurrency market. The crypto world holds its breath, awaiting the SEC’s next move in this high-stakes game.