The SEC delays the ARK 21Shares Bitcoin ETF, citing that it would take more time to make the decision whether to approve or disapprove.
This rule change would enable ARK 21Shares’ Bitcoin ETF to be listed on the Cboe BZX Exchange.
The commission had previously delayed its decision on August 11 and gave the regulator a deadline of November 11 to make a decision whether to approve the ETF, disapprove, or delay the decision once more.
The SEC said, “The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change […] and the issues raised therein.”
On the same day, the SEC decided to delay making a decision about a Bitcoin ETF proposal from GlobalX, and it’s unclear why they decided to wait longer than usual to make a decision about other Bitcoin ETF applications that are due in October and November.
Normally, the SEC waits until just a few days before the deadline to announce any delays.
Now, the SEC has given an additional 60 days to review ARK 21Shares’ proposal, which means their final decision deadline will be January 10. This is 240 days after ARK 21Shares initially submitted their application. The next deadline for GlobalX’s ETF proposal will be on November 21.
A group of four U.S. Representatives sent a letter to SEC chair Gary Gensler, asking him to quickly approve a Bitcoin ETF that deals with actual Bitcoins, not futures.
They accused the SEC of having different and unfair rules for approving ETFs related to cryptocurrency futures compared to those for ETFs connected to actual Bitcoin investments.