US SEC Faces Deadline to Rule on ARK Invest Bitcoin ETF Application
The US Securities and Exchange Commission (SEC) has until August 13th to respond to ARK Invest’s Bitcoin spot exchange-traded fund (ETF) application. This is the first of several applications from Wall Street incumbents seeking exposure to Bitcoin.
- ARK Invest applied for a spot fund on May 15th, and the SEC will either approve, reject, or begin rejection proceedings by the deadline.
- If approved, it could set a precedent for other applications from Bitwise, BlackRock, VanEck, WisdomTree, Valkyrie, First Trust Galaxy, and Fidelity.
- Bloomberg analysts have revised their prediction of approval upwards due to the involvement of these major Wall Street players.
Matt Hougan at Bitwise believes the SEC will handle the ARK application in the same manner as previous spot ETF applications since 2016, which were met with delays.
Despite regulatory challenges, Purpose Investments’ spot Bitcoin ETF in Canada has seen significant investment from Americans, managing around $500 million.
- This is notable considering Canada’s securities agency has ejected several crypto exchanges for non-compliance.
Grayscale Investments is confident that it will win a court case to convert its Bitcoin trust into an ETF, potentially leading to SEC approval in October.
- Last year, the SEC rejected Grayscale’s application, but the company sued, arguing that the agency had approved futures ETFs with the same price reference.
- A panel of judges criticized the SEC in March for not providing a clear explanation for its rejection of Grayscale’s application.
Hot Take
The deadline for the SEC’s ruling on ARK Invest’s Bitcoin ETF application is approaching. If approved, it could pave the way for other major players on Wall Street to enter the crypto market. However, previous spot ETF applications have faced delays, indicating that the SEC may adopt a similar approach. Despite regulatory challenges, Purpose Investments’ Bitcoin ETF in Canada has attracted significant investment from American investors. Grayscale Investments is confident that its court case will result in the conversion of its Bitcoin trust into an ETF, potentially leading to SEC approval. Overall, the crypto market is eagerly awaiting the SEC’s decision on these ETF applications and the potential impact it could have.
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