The SEC's Decision to Delay ARK Invest's Spot Bitcoin ETF Could Impact 2023 Approval

Bombolo | News and Media

In a significant development, the U.S. Securities and Exchange Commission (SEC) has announced its decision to postpone the ARK Invest 21Shares spot Bitcoin Exchange Traded Fund (ETF) filing. This decision, which arrived on Tuesday, September 26, 2023, may have far-reaching implications, potentially reducing the chances of a spot ETF approval in 2023.

Also Read: BlackRock's Spot Bitcoin ETF and Its Impact on Cryptocurrency Markets

The Delay Decision

The SEC, responsible for overseeing the approval of ETFs, has extended the timeline for any action on the proposed rule change by ARK Invest 21Shares. This decision comes much earlier than expected, as the original deadline for the decision was November 11, 2023. Notably, this announcement precedes the scheduled hearing of SEC Chair Gary Gensler before the Financial Services Committee on September 27, 2023.

The SEC's message regarding the ARK Invest filing reads, "Notice of Designation of a Longer Period for Commission Action on Proceedings to determine whether to approve or disapprove a proposed rule change…"

Implications for 2023

James Seyffart, a Bloomberg ETF analyst, believes that this decision by the SEC could dash any hopes of ETF approval in 2023. Adding to the complexity, decisions on the filings of other major players such as BlackRock, Bitwise, and Wisdomtree, among others, are expected in the third week of October 2023. The big question remains: Will these applications also face delays?

Seyffart suggests, "If they went on Ark/21 shares already, we may see delays on all the other filings today too? BlackRock, Bitwise, VanEck, Invesco, Wisdomtree, Fidelity, and Valkyrie are all due in mid-October."

Also Read: The Ultimate Guide to BlackRock's Bitcoin ETF: Working Mechanism, Benefits, and Drawbacks

Recent Developments

Interestingly, it was only on September 12, 2023, that Franklin Templeton joined the list of financial giants seeking approval for the first-ever spot BTC ETF in the United States. However, CoinGape reported that the investment management firm is yet to file the 19b-4, a crucial step in the approval process.

The SEC's decision to delay the ARK Invest 21Shares spot Bitcoin ETF filing has introduced a significant twist in the unfolding ETF saga. With the possibility of no ETF approval in 2023 looming, the crypto community and financial markets are bracing themselves for potential disruptions. The upcoming decisions on other ETF filings will undoubtedly be closely monitored for further insights into the SEC's stance on cryptocurrency ETFs.

Also Read: A Glimpse into the Future of Bitcoin: Why the BlackRock Spot ETF Matters

FAQs

1. Why did the SEC decide to delay the ARK Invest ETF filing?

   The SEC extended the timeline for the ARK Invest 21Shares spot Bitcoin ETF filing, possibly affecting its approval in 2023. The exact reasons behind this decision are not disclosed.

2. What impact could this delay have on the cryptocurrency market?

   The delay could lead to uncertainties in the cryptocurrency market, especially for those hoping for an ETF approval in 2023.

3. Are other ETF filings also facing potential delays?

   Yes, decisions on ETF filings by BlackRock, Bitwise, and Wisdomtree, among others, are expected in the third week of October 2023, and they might also face delays.

4. Who is James Seyffart, and why is his opinion significant?

   James Seyffart is a Bloomberg ETF analyst, and his perspective is valuable because he believes that the SEC's decision may have effectively ruled out ETF approval in 2023.