SEC Delays Ark Invest Spot Bitcoin ETF Application
The US Securities and Exchange Commission (SEC) has announced a delay in its decision on Ark Invest’s spot Bitcoin exchange-traded fund (ETF) application. The SEC published a letter calling for more information from the public before making a determination.
Despite allowing multiple futures-based Bitcoin ETFs, the SEC has yet to approve a spot Bitcoin ETF for the US market. This has caused anticipation among industry insiders, especially when global asset management firms BlackRock and Fidelity filed proposals to offer spot Bitcoin ETFs.
The news of the delay for Ark Invest’s ETF has been met with muted disappointment in the crypto industry. Bloomberg ETFs expert James Seyffart highlighted that the market had largely priced in a delay for the Ark Invest ETF. He mentioned in a tweet that the next SEC deadline for Bitcoin ETFs was expected to result in a delay.
As is common with previous applications, the SEC’s consideration for the Ark Invest ETF will now involve further comments and review for up to 60 days. A decision is likely to come later in the year, with the third deadline for the Ark ETF in November and the final deadline in January 2024.
Other leading firms, including BlackRock and Fidelity, are also seeking approval for spot Bitcoin ETFs. Their applications have a deadline next month, and it is expected that they may also face delays. However, speculation exists that the SEC may decide to approve multiple Bitcoin ETFs simultaneously.
The delay in the SEC’s decision on Ark Invest’s spot Bitcoin ETF application demonstrates the cautious approach it is taking towards approving such funds. While the anticipation for a spot Bitcoin ETF mounts, industry participants will have to wait for further updates from the SEC on the progress of these applications.