The SEC Delays Decision on Ark 21Shares Bitcoin ETF
The Securities and Exchange Commission (SEC) has postponed its decision on whether to approve or deny the Ark 21Shares Bitcoin ETF for listing on BZX. This delay may also impact other Bitcoin spot ETF applicants. The SEC is seeking public comment on the application and has not reached any conclusions yet.
Key Points:
– The SEC wants to know if the proposed ETF would be protected from fraudulent and manipulative acts and if the Bitcoin market is prone to manipulation.
– Previous applicants have tried to form surveillance-sharing agreements with the CME Bitcoin Futures market, but the SEC believes this market cannot meet its requirements.
– The SEC is asking for opinions on whether trading on the CME is necessary for market manipulation and if an agreement with Coinbase would help detect fraud and manipulation.
– The next approval deadlines for Bitcoin spot ETFs are in early September, and decisions can also be delayed.
– ARK’s final deadline is on January 10, and its approval could lead to the approval of rival firms simultaneously. Grayscale’s lawsuit with the SEC may also impact spot ETF approval.
Hot Take:
The SEC’s decision to delay the approval of the Ark 21Shares Bitcoin ETF suggests that they are carefully considering the potential risks of market manipulation. The questions posed to the public indicate their concerns about the robustness of the Bitcoin market and the adequacy of surveillance measures. The outcome of this decision will likely have implications for other ETF applicants and the future of Bitcoin spot ETFs.
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