Will the United States Securities and Exchange Commission (SEC) give the green light to a spot Bitcoin ETF? This remains a burning question as the SEC postpones its decision on the proposal submitted by ARK Investment Management. The news broke on August 11th, with the SEC announcing a 21-day public comment period for the ARK 21Shares Bitcoin ETF, following its publication in the Federal Register.
A Waiting Game for Approval
The SEC has been keeping the crypto world on its toes, repeatedly delaying its decision on whether to sanction a spot crypto ETF in the U.S. ARK initially submitted its proposal in May, and the SEC has a maximum of 240 days — till January 2024 — to make a final decision. This latest delay is just another chapter in the ongoing saga.
Regulations and Precedents
One of the key points raised by the SEC is the ‘regulated market of significant size test’. This does not necessitate the spot Bitcoin market to be regulated for the proposal to be approved. In fact, the SEC’s statement highlighted that it would be unusual for the underlying market of a spot commodity or currency to be a regulated market.
Competition in the Market
ARK Investment Management is not alone in its quest to get a spot crypto ETF listed on a regulated exchange. Other major players, such as BlackRock, the world’s largest asset management firm, submitted their own application in July. Interestingly, several firms have modified their applications to include cryptocurrency exchange Coinbase as a surveillance-sharing partner, following rumors that SEC officials might be more receptive to an ETF under such conditions.
As the crypto world waits with bated breath for the SEC’s final decision, the spot Bitcoin ETF saga continues to unfold. Staying informed on these developments is crucial for investors. Platforms like cryptoview.io offer valuable insights and updates on the evolving landscape of cryptocurrencies.
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As this story develops, more information will be provided as it becomes available.
