ARK Investment Management and 21Shares may have to wait till next year for a decision from the United States Securities and Exchange Commission (SEC) on the ARK 21Shares Bitcoin (BTC) Exchange Traded Fund (ETF). The regulator claims that it needs ample time to consider the proposed rule change, hence, it has moved to delay its decision to around January 10.
U.S. Regulator Requests For More Time
It is worth noting that GlobalX’s ETF application was equally postponed from October 7 to November 21. Based on the initial arrangement, a decision from the SEC about the ARK 21Shares Bitcoin ETF was supposed to be due by November 11.
According to the SEC’s filing, “The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change.”
Multiple Rejections From the SEC
The new date is expected to be the final deadline for either an approval or a rejection, which ARK 21Shares had suffered a number of times. For the second time in a row, the SEC rejected ARK 21Shares’s application for their spot BTC ETF at the beginning of this year.
The regulator claimed that both ARK and Cboe BZX Exchange, the exchange where the ETF would be listed, does not meet the criteria for offering such options. In addition, the SEC stated that they would need to have a comprehensive surveillance-sharing agreement for their application to be considered.
What Has Changed?
It is expected that the story would be different this time around, especially with the recent happenings in the crypto industry. BlackRock’s interest in the crypto ecosystem, exhibited in its move to apply for a spot BTC ETF, comes with a lot of hope for the broad digital asset market. The investment asset management firm is one who is recognized for its reputation and stature.
Having BlackRock submitted a BTC ETF application brought a ray of hope to the ecosystem. Also, Grayscale’s victory in court in the battle against the SEC over the rejection of its spot Bitcoin ETF application is a milestone for many other ETF applications.