In a filing dated September 26, the US Securities and Exchange Commission (SEC) postponed its decision on a major Bitcoin exchange-traded fund (ETF), further delaying the final ruling on the ARK 21Shares Bitcoin ETF.
This filing acknowledged that the Cboe BZX had previously proposed a rule change aimed at approving and listing the ARK 21Shares Bitcoin ETF.
Although Cboe BZX filed on April 25, 2023, the proposal was not published for comment in the Federal Register until May 15. The SEC subsequently established a longer approval period on June 15, 2023, extending the date within which it was required to issue an approval, issue a rejection, or initiate a proceeding that will determine whether a rejection should be issued. Cboe BZX also submitted amendments on three dates.
The SEC was expected to approve or reject the proposal within 180 days of publication of the proposed rule, or no later than November 11, 2023. However, the securities regulator said in its current filing that it may extend the approval period for an additional period. 60 days. Therefore, the agency postponed its decision until January 10, 2024.
At the same time, the SEC postponed a decision on GlobalX’s Bitcoin ETF. In this case, the regulator must approve or disapprove the ETF before November 21, or initiate proceedings.
The Global X ETF is separate from the ARK 21 Shares ETF. However, both applications were submitted by, and concern proposed listings and rule changes, on Cboe BZX.
Several other Bitcoin ETFs are awaiting approval
The delays faced by the aforementioned ETFs are significant as they may provide an indication of the SEC’s future consideration of several other pending filings.
Many asset managers filed similar applications for spot Bitcoin ETFs after BlackRock filed its own in mid-June. However, ARK submitted the application considerably earlier. As a result, the SEC can only delay a decision on ARK’s ETF until January 2024, while it can delay some other decisions until March 2024.
The delay is not unexpected. Cathie Wood, CEO and CIO of ARK Invest, suggested in August that the SEC would likely delay a decision on her company’s filing. Nevertheless, Wood expressed expectations that the SEC will eventually approve several funds.
Incidentally, several US lawmakers today urged the SEC to approve a Bitcoin ETF in a letter addressed to Chairman Gary Gensler and several commissioners.
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