SEC Postpones Decision on Ark Invest’s Bitcoin ETF

Once again, the United States Securities and Exchange Commission (SEC) has chosen to defer its long-awaited decision regarding the Bitcoin exchange-traded fund (ETF) application submitted by Ark Invest and 21Shares. This move by the regulatory authority has ignited considerable speculation, with Bloomberg analyst James Seyffart noting that the decision wasn’t due until November 11.

According to Seyffart, this early postponement could indicate the SEC’s potential intention to delay approvals for spot Bitcoin ETF applications until the following year. Historically, the SEC has been known to use the maximum allotted time for making decisions on spot Bitcoin ETF applications. This preemptive action regarding Ark Invest’s filing may be a proactive approach by the agency. Considering the looming possibility of a U.S. government shutdown, which would incapacitate the SEC, delaying the ETF decision seems to be a prudent move on the part of the regulator.

The anticipation for a spot Bitcoin ETF in the United States is experiencing dynamic growth, especially with heavyweight contenders like BlackRock entering the competition. This development has only heightened the level of anticipation.

In a recent legal dispute between Grayscale and the SEC, the courts ruled in favor of Grayscale, potentially granting the broader industry a significant advantage in the pursuit of a spot Bitcoin ETF. The presiding judge criticized the SEC for refusing to allow Grayscale to convert its Grayscale Bitcoin Trust (GBTC) product into a full-fledged Bitcoin ETF and ordered a review.

The SEC may now be taking this court ruling into account, leading to a reconsideration of its stance. This shift in approach has raised hopes that the regulator may have reached the end of an era marked by multiple rejections of Bitcoin ETF applications.

Image Credit: Shutterstock