The United States Securities and Exchange Commission (SEC) has delayed its decision regarding the spot Bitcoin (BTC) exchange-traded fund (ETF) applications from ARK Invest and 21Shares until January 10, 2024. The announcement, made on Tuesday, came earlier than expected and extends the SEC's previous deadline of November 11, 2023.
The SEC also postponed its decision concerning a similar application from Global X until November 21, 2023. This delay means that the regulator will take the maximum allowed time of 240 days to decide on these applications. The initial application from ARK 21Shares was filed in May 2023.
The early move by the SEC has led to speculation about possible reasons behind it. Bloomberg ETF analyst James Seyffart suggested that the early decision might be due to a looming US government shutdown.
In a notice issued on September 26, the SEC stated that it needed additional time to consider the proposed rule change that would allow ARK 21Shares’ spot BTC ETF on the Cboe BZX Exchange. The regulator noted that the extension was necessary for it to have sufficient time to consider the proposed rule change and related issues.
This development comes amidst calls from four members of Congress for immediate approval of spot BTC ETFs. They argued in a letter to SEC Chairman Gary Gensler that a court ruling in a case involving Grayscale and the SEC indicated there was no further reason for the agency to continue rejecting spot BTC ETF filings under inconsistent and discriminatory standards.
Meanwhile, other spot Bitcoin ETF applications from companies such as BlackRock (NYSE:BLK), Valkyrie, Invesco, Fidelity, VanEck, Bitwise, and WisdomTree have also been extended and are due in October 2023. Seyffart speculated that there could be more delays in the coming days, reducing the likelihood of an approved spot Bitcoin ETF in the US in 2023.
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