The U.S. Securities and Exchange Commission (SEC) has decided to delay its approval or disapproval of a proposed rule until January 2024. This rule pertains to whether the ARK 21Shares’ spot BTC ETF will be allowed on the Cboe BZX Exchange.
Decision of the SEC
In a recent press release, the SEC announced that it needs more time to review and make a decision on the proposed regulation change for the ARK 21Shares’ spot BTC ETF. This delay comes on the same day that the SEC also postponed deciding on GlobalX’s proposed Bitcoin ETF.
The specific deadline for ARK 21Shares is set for November 10, after an additional 60 days of examination. GlobalX’s ETF deadline is set for November 21.
Letter from U.S. Lawmakers to SEC Urging the Approval of Bitcoin ETF
Following the SEC’s decision to delay, a group of four U.S. Representatives sent a joint letter urging SEC chair Gary Gensler to approve a spot Bitcoin ETF immediately. They argued that the SEC’s inconsistent standards were hindering innovation and limiting investment opportunities for American investors.
Currently, no spot BTC ETFs have been authorized for listing on American exchanges by the SEC. The deadlines for spot crypto ETF applications are set for October by seven prominent companies, but these deadlines may be extended by the SEC until March.
Market Opinion
The SEC’s decision to extend the decision-making process has led to speculation among market participants. Some experts believe that the commission is taking extra time to evaluate the risks and benefits of approving a Bitcoin ETF thoroughly. Others think external factors such as regulatory developments or market volatility may be influencing the SEC’s decision.
Hot Take: SEC Delays Decision on Bitcoin ETFs
The SEC’s decision to delay the approval or disapproval of the proposed rule for Bitcoin ETFs has raised questions about the regulatory landscape for cryptocurrencies. While some argue that the delay is necessary for a thorough evaluation of potential risks, others see it as a hindrance to innovation and investment opportunities. The letter from U.S. lawmakers highlights the need for regulatory clarity and equal treatment of spot investment vehicles and crypto futures. As the deadlines for spot crypto ETF applications approach, market participants eagerly await the SEC’s final decision.
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