The U.S. Securities and Exchange Commission (SEC), has yet again postponed a decision on the proposed ARK 21Shares spot Bitcoin ETF. This decision announces a new deadline on January 10th next year, following a call for fast-track approval by a bipartisan collective of lawmakers only hours earlier.
In the SEC’s formal statement, it highlighted its need for an extended span to meticulously scrutinize the suggested rule modification. However, this deferral isn’t isolated to only ARK 21Shares Bitcoin ETF. The Global X Bitcoin Trust was also affected, given a new proposed decision deadline on November 21st. This suggests a potential cascade of delays for applications correlating to spot Bitcoin funds.
Previously, the SEC issued a similar postponement. Initially, in response to ARK Invest and 21Shares’ proposal, a deadline for approval, disapproval, or initiation of proceedings was instituted for August 13th. Cathie Wood, Ark Invest’s CEO, did foresee this initial delay and suggested that the SEC might approve numerous Bitcoin ETFs collectively when it gives these financial products the proverbial green light.
Many applications for assorted spot Bitcoin funds are currently under review by the SEC from notable industry figures such as BlackRock, Fidelity, VanEck, and Invesco. The ARK 21Shares Bitcoin ETF application was leading the charge. Decision deadlines for other Bitcoin-related funds have also been deferred—BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Trust, the VanEck Bitcoin Trust, the WisdomTree Bitcoin Trust, and the Invesco Galaxy Bitcoin ETF all received deadline extensions to October 17th. The Valkyrie Bitcoin Fund deadline was rescheduled to October 19th, while the Bitwise Bitcoin ETP Trust decision was last deferred to October 16th.
Despite these deferrals, the SEC is yet to approve a spot Bitcoin ETF, indicating apprehensions about potential fraud and market manipulation. Nevertheless, they did permit the first Bitcoin futures ETF to kick off trading in 2021.
In light of the SEC’s cautious approach, it’s hard to shake off a sense of scepticism about the potential integrated market manipulation. However, it remains essential to balance regulatory prudence with technological innovation and progress. Only then can the true power of cryptocurrencies like Bitcoin be effectively harnessed without unnecessary risks.
Source: Cryptonews
