Recent activities by the U.S. Securities and Exchange Commission (SEC) have stirred up the cryptocurrency community. The SEC has called for public commentary regarding the proposed spot bitcoin application from ARK Invest & 21Shares Bitcoin ETF. This move marks a significant step in the SEC’s in-depth analysis of a series of Bitcoin ETF submissions.
SEC’s Deep Dive into Bitcoin ETF Submissions
The SEC has extended its review of the ARK 21Shares Bitcoin ETF proposal, while also examining proposals from industry heavyweights like BlackRock and Fidelity. This move to solicit additional feedback on the ARK Invest and 21Shares application was widely expected. Stakeholders now have 21 days to provide their “written data, views, and arguments.”
Earlier, ARK’s CEO, Cathie Wood, had hinted at such a delay, stating that the SEC would likely approve more than one Bitcoin ETF simultaneously. The regulatory body is currently reviewing a minimum of eight different fund applications, with the ARK 21Shares Bitcoin ETF being the first.
The ARK 21Shares Bitcoin ETF Journey
Since 2021, Ark Investment Management and 21Shares have been seeking ETF approval. After their second application was rejected by the SEC, they filed once again for a potential bitcoin ETF application earlier this year. The SEC has historically rejected spot bitcoin ETF proposals, citing concerns over potential market manipulation and inadequate protections for consumers against malicious activities.
Potential Rejection of Applications
If an ETF is approved, it would allow a broader segment of the general investing public to trade and hold the value of bitcoin without owning the digital asset directly. This potential sparked a bullish rally, leading to a surge in bitcoin’s price, which increased by roughly 20% following BlackRock’s submission.
However, SEC Chair Gary Gensler has expressed concerns about deceit and misconduct in the industry. Before the SEC’s decision, Scott Farnin, a legal advisor at consumer advocacy group Better Markets, argued that the regulator should reject the bitcoin ETF applications outright. He raised concerns about the spot bitcoin markets, pointing out their history of potentially manipulated trading volumes and a high concentration. He also mentioned the network’s dependence on a select group to maintain it.
As the future of the ARK Invest & 21Shares Bitcoin ETF hangs in the balance, cryptocurrency enthusiasts can stay updated on the developments using the cryptoview.io application. The app provides a seamless way to track cryptocurrency trends and updates in real-time.
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Tags: Bitcoin, Crypto Vs SEC, Cryptocurrency, SEC
