The U.S. Securities and Exchange Commission (SEC) wanted to hear what people think about a new rule. This rule could let them decide about Bitcoin exchange-traded funds (ETFs) that work with actual Bitcoins.
This delay means they’re taking more time before saying yes or no to Ark Invest’s Ark21Shares Bitcoin ETF.
The SEC is taking more time to decide about the Ark21 Shares Bitcoin ETF. They’re asking for more opinions about a change in the application. Because of this delay, we might not get a decision on the Bitcoin spot ETF until 2024.
Even though there are already some ETFs about Bitcoin futures, many new applications for ETFs linked to actual Bitcoins were sent in after BlackRock made a new suggestion.
SEC’s Delayed Decision
The SEC is asking the public to give their opinions about the Ark21 Shares Bitcoin ETF plan, a collaboration between ARK Invest and 21 Shares. They want to know if people think a Bitcoin ETF based on actual Bitcoins might be manipulated, and if the Bitcoin market has enough clear information and trade activity to prevent manipulation.
Originally, the SEC was supposed to decide about this Bitcoin ETF by August 13. But now, the final decision might not come until 2024. The SEC has said no to other Bitcoin ETFs before, but there are already some Bitcoin ETFs connected to futures contracts available.
The Ark21Shares Bitcoin ETF would follow how well Bitcoin is doing using the S&P Bitcoin Index, which gathers data from different cryptocurrency exchanges. The ETF would hold real Bitcoin and would be listed on the Cboe BZX Exchange.
Recently, Cathie Wood, the CEO of ARK Invest, said in an interview that she thought the SEC would delay their proposal with 21 Shares. She also predicted that multiple Bitcoin ETFs linked to real Bitcoins might eventually get approved at the same time.
Focus on BlackRock’s Bitcoin ETF Application
In June, a bunch of plans for Bitcoin ETFs tied to actual Bitcoins were made, especially after BlackRock (BLK) jumped in with their own idea. Many experts thought that BlackRock joining the Bitcoin ETF market might mean the SEC could approve these ETFs soon.
People believed this because BlackRock plays a big role in the U.S. financial system. Just this week, the CEO of Galaxy Digital, Mike Novogratz, said his connections at BlackRock told him they thought their Bitcoin ETF plan could get the nod from the regulators within six months.
Even though the SEC has been more careful about cryptocurrencies this year, Bitcoin has mostly stayed safe from this close watch. This is because the current chair of the SEC, Gary Gensler, has clearly said that Bitcoin is not like a security.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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