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US SEC Delayed Decision on ARK 21Shares Bitcoin ETF Application

by Admin Webtingale
US SEC Delayed Decision on ARK 21Shares Bitcoin ETF Application

The United States Securities and Exchange Commission (SEC) extended its final decision on whether to approve the launch of ARK 21Shares’ spot BTC ETF to January 27, 2023.

The Commission stated it needs more time to consider the pros and cons of the ETF.

Two More Months

Ark Invest wanted to introduce a spot Bitcoin ETF on the Cboe BZX Exchange in 2021 when it teamed up with the Switzerland-based fintech company – 21Shares. The securities watchdog of the States, though, dismissed the application earlier this year.

However, the partners filed with the SEC again shortly after the rejection. The Commission was supposed to give its final say on the product during the summer but extended the window for its decision by several months.

In a recent announcement, the agency said it will delay its conclusion again until January 27, 2023.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.

Accordingly, the Commission […] designates January 27, 2023, as the date by which the Commission shall either approve or disapprove the proposed rule change.”

While numerous other firms, including VanEck and Grayscale, have tried to list a spot crypto ETF in the USA lately, the SEC has not yet approved any.

Still, the watchdog has given a green light to ProShares to launch a Bitcoin futures-backed ETF in the States. BITO saw the light of day in October 2021 and infused huge enthusiasm in the crypto community. It generated $500 million of volume in its first hour of existence and started trading at approximately $40.

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Due to the prolonged bear market, though, its valuation has significantly declined and currently hovers at around $10.

Vitalik Buterin Welcomes the SEC’s Approach

Ethereum’s Co-Founder Vitalik Buterin is somewhat relieved that regulators keep rejecting cryptocurrency exchange-traded funds (ETFs) applications. In a recent tweet, he argued that the industry needs to mature before such products start popping up.

“Another maybe-controversial take of mine is that I don’t think we should be enthusiastically pursuing large institutional capital at full speed,” the Russian-born programmer added.

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