The United States Securities and Exchange Commission (SEC) has declared a delay of its decision to approve Ark 21 Shares spot Bitcoin exchange-traded fund (ETF) until the new year, extending to the maximum deadline.
Ark Invest and 21 Shares joined forces to apply for the Ark 21Shares Bitcoin ETF, persistently advocating for its approval for more than two years.
SEC Delays Ark21Shares Bitcoin ETF Decision to the Final Deadline
In a recent court filing, the SEC outlined its decision to postpone approval of Ark Invest and 21Shares’ spot Bitcoin ETF application on the Cboe BZX Exchange until January 10, 2024.
The proposed rule change had been made available for comment on May 15. The SEC utilized its 180-day extension window, which runs until November 11.
However, the SEC are eligible for an additional 60-day extension, which would take them into the new year. It decided to take up the option early, by making the announcement today.
“The Commission, pursuant to Section 19(b)(2) of the Act designates January 10, 2024, as the date by which the Commission shall either approve or disapprove the proposed rule change, as modified by Amendment No. 3.”
If the proposed rule undergoes modification, it will enable the listing of Bitcoin ETF products on the stock exchange.
Bitcoin’s Price has not swayed significantly since the news has been announced. It has dropped approximately 1% over the past 24 hours.
At the time of publication, Bitcoin’s price is $26,182.
SEC Under Pressure for Bitcoin ETF Decision
On August 7, the SEC had seven days to either approve, deny, or request more time on Ark Invest’s Bitcoin ETF. The two firms initially approached the SEC for approval in 2021.
Cathie Wood, the CEO of Ark Invest, has been vocal about the ongoing decision in recent times. She anticipated that the SEC would wait to approve multiple ETF applications in one go:
“Because most of these will essentially be the same, it will come down to marketing, communicating, the message.”
Meanwhile, reports have widely covered the SEC’s continuous delays in making a decision on the other applicants.
On August 31, in seven separate filings, the SEC stated that it requires extra time to review the proposed rule change.
The seven applicants include the world’s largest asset manager, BlackRock. Additionally, it affects VanEck, WiseOrigin, Invesco Galaxy, WisdomTree, Bitwise, and Valkyrie Digital Assets.
This is a developing story, more information will be added as it becomes available.
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