SUMMARY
- The SEC extends the decision-making process on Ark21Shares Bitcoin ETF, potentially stretching the process into 2024.
- Major financial players such as BlackRock and WisdomTree have entered the race, while Grayscale faces rejection.
- Signs of a more crypto-friendly SEC emerge, despite the past rejections of spot bitcoin ETFs.
The SEC (Securities and Exchange Commission) has once again hit the pause button on Ark21Shares Bitcoin ETF's dreams, a development in the ongoing battle to enable crypto trading on mainstream U.S. exchanges. With the deadline set for August 13, the regulatory body announced last Friday that it needs more time, inviting public opinions on one of the amendments. The waiting game might now extend into 2024.
Ark21Shares is leading the charge as the foremost candidate for a potential Bitcoin ETF launch. SEC, however, holds the power to approve multiple funds simultaneously. In an optimistic note, Cathie Wood, Ark Invest's CIO, hinted to Bloomberg News that a decision on several funds at once is something she anticipates.
The competition is thickening, with big names like BlackRock and WisdomTree already lining up with applications. On the flip side, Grayscale's plan to turn its Bitcoin Trust into an ETF is hanging in limbo, facing repeated rejections by the SEC.
In a parallel move, the Cboe BZX exchange attempted to green-light Ark21's spot bitcoin fund through a rule change this April. With several amendments, including a surveillance-sharing clause seen in BlackRock's filing, the request is still under consideration.
The landscape might be slowly changing. Despite the SEC's history of refusing spot bitcoin ETF applications and Chair Gary Gensler's previous crackdown on the crypto industry, recent developments show signs of favor toward crypto, including a legal win for Ripple. Meanwhile, the SEC has not completely shut the door on crypto, allowing the launch of several Bitcoin futures ETFs. In the midst of all this, Bitcoin's price seemed unfazed, hovering above $29,000.
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