The US Securities and Exchange Commission (SEC) is not rushing its decision regarding the ARK 21Shares Bitcoin spot ETF. On September 26th, the commission announced an extended period to consider the possible listing of this investment vehicle on the Cboe BZX Exchange. Previously, on August 11th, the SEC had already postponed its decision, marking November 11th as the judgment day. However, with the recent 60-day extension, all eyes will now be on January 10th, which is 240 days after the initial submission of the application in May 2023.
The SEC’s Logic Behind a Bitcoin ETF Remains Veiled
The Commission believes it is appropriate to provide a longer period for issuing an order approving or disapproving the proposed rule change, to allow sufficient time to consider the proposed rule change…
What remains shrouded in ambiguity is the SEC’s reasoning behind such an extended decision-making period, especially when announcing the notable 45-day extension before the stipulated deadline. Historically, the commission has waited until the last minute or only a few days before the set deadline to declare any postponements. Their recent statement simply emphasized the need for ‘sufficient time to consider the proposed rule change and the issues raised by it.’ This adds another layer of mystery to the regulatory landscape surrounding cryptocurrency-based ETFs and underscores the significance of the ARK 21Shares proposal in the broader financial arena.