The Securities and Exchange Commission (SEC) has extended the review period for the ARK 21Shares Bitcoin ETF. This exchange-traded fund (ETF) aims to track the prices of Bitcoin. The SEC will now evaluate it until 10 January 2024. Lawmakers pressure SEC for earlier approval of spot Bitcoin ETFs. However, the Exchange Commission has chosen to delay its decision.
The exchange commission announced on 26 September that they need more time to review the application for listing on the Cboe BZX Exchange. The SEC has also welcomed written community opinions on the ARK spot ETFs.
The ARK 21Shares Bitcoin ETFs is one among several applications aiming to provide a spot Bitcoin ETF. It is important to note that a spot Bitcoin ETF functions differently from the future ETFs.
The Exchange Commission approved Bitcoin’s future ETFs in 2021. Spot Bitcoin ETFs securely hold actual Bitcoins and direct track their prices. In contrast, a Bitcoin futures ETF involves contracts speculating on future Bitcoin prices.
The SEC appears to be more comfortable with Bitcoin future ETFs as they fall under the regulation of the Commodity Futures Trading Commission (CFTC) and they are traded on established exchanges.
The SEC did not approve any Bitcoin exchange-traded funds (ETFs) until now. There is skepticism among experts regarding the possibility of such approval in the near future. Concerns revolve around possible market manipulation and ensuring investors’ protection.
Delay Carries Implications For Both The Bitcoin Market And Investors
The Exchange Commission prolonged the decision-making process on approving ARK spot EFTs. This decision holds the potential for both positive and negative impacts on the Bitcoin market. On one side, it may dampen interest and demand for Bitcoin as some investors grow impatient and lose faith in the regulatory approval process.
Conversely, it could create an atmosphere of excitement for a possible breakthrough. This situation presents an opportunity for certain investors to consider acquiring more Bitcoin at a potentially reduced price before a potential rally occurs.
The recent months have witnessed significant volatility in the price of Bitcoin. It has experienced fluctuations between $40,000 and $50,00. Amidst regulatory challenges and technological advances, investors are grappling with the risks and potential rewards associated with investing in this cryptocurrency.
The SEC’s vigilant attitude towards crypto holds broader repercussions for the financial markets. It signifies a regulatory environment that, although not completely dismissive of these digital assets. It needs heightened scrutiny and adherence to compliance standards.
The SEC decision could greatly impact the future of cryptocurrencies and blockchain technology. However, rather than awaiting approval from the SEC, certain investors are actively seeking alternative methods to access Bitcoin. Some options include investing in products offered by Grayscale Investments.
The Exchange Commission has decided to delay its response, which comes in the wake of a recent court ruling in favor of Grayscale Investments. Grayscale had filed a lawsuit against the SEC concerning a spot Bitcoin fund. This verdict potentially increases the chances of future approval for a spot Bitcoin ETF.
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