The US Securities and Exchange Commission (SEC) has announced a delay in its decision to approve or disapprove a Spot Bitcoin exchange-traded fund (ETF) proposed by ARK Investment Management. On August 11, the SEC opened the ARK 21Shares Bitcoin ETF to a 21-day public comment period after publishing it in the Federal Register. This marks the latest delay in the approval process for a spot crypto ETF in the United States. ARK initially submitted the ETF application in May, giving the SEC until January 2024 to make a final decision.
For listing on the Cboe BZX exchange, which is ARK Investment Management's goal, applicants need to demonstrate a "comprehensive surveillance sharing agreement with a major regulated market." The SEC had previously rejected the firm's crypto ETF proposals, stat ing concerns about preventing fraudulent activities and protecting investors. The SEC clarified that the spot bitcoin market doesn't necessarily need to be regulated for the Commission to approve the proposal, and past precedent supports the notion that a regulated market for a spot commodity or currency can be considered a US securities exchange .
Cathie Wood, the founder and CEO of ARK Investment Management, expressed her anticipation for the SEC's decision delay in an interview on August 7. She also suggested that the committee might eventually approve multiple spot BTC ETFs simultaneously. ARK Investment Management is one of several US firms seeking to list a spot crypto ETF on a regulated exchange. Even BlackRock, the world's largest asset manager, filed its own application in July. Many firms have revised their applications to include Coinbase as a surveillance sharing partner, responding to indications that the SEC might be more inclined to approve spot crypto ETFs under these conditions.
As of August 11, the SEC has not greenlit any applications for spot crypto ETFs to be listed in the US However, investment products linked to BTC futures have been permitted since October 2021. Grayscale is currently embroiled in a legal dispute with the SEC over its Refusal to allow its Bitcoin Trust to be listed as a spot Bitcoin ETF.
