The US Securities and Exchange Commission (SEC) is still hesitant to approve a spot Bitcoin exchange-traded fund (ETF). The regulator has postponed the deadline to approve or reject the ARK 21Shares Bitcoin ETF. The new date for this decision has been set at August 30.
SEC postpones decision for ARK 21Shares spot Bitcoin ETF
The Tuesday filing by the SEC said that the regulator had extended the date for deciding when the ARK 21Shares spot Bitcoin ETF would be approved or rejected. The decision was initially meant to be made on July 16, but it has now been pushed forward by another 45 days to August 30.
The application for this ETF was originally filed in May with the SEC. On June 1, the application was released for comment in the Federal Register. The application includes a proposed rule change from BZX Exchange, a Chicago Board Options Exchange.
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Ark Invest announced a partnership with 21Shares to file for the application of a spot Bitcoin ETF. The ETF is listed on the Cboe BZX Exchange. However, the SEC rejected the application earlier this year.
However, under the current regulations, the SEC can delay its decision and list this product for public comment for up to 180 days. Moreover, it is estimated that the SEC could decide on this matter by January next year.
The assistant secretary for the SEC, J.Matthew DeLesDernier, said that the regulator had sought an extension on its decision to give it ample time to assess the proposed rule change and the issues raised about this product.
SEC fails to approve spot Bitcoin ETFs
The commission has failed to approve any investment product that provides direct exposure to cryptocurrencies. However, it has approved investment products that expose investors to Bitcoin futures. The regulator approved Valkyrie and ProShares Bitcoin futures ETFs in October last year.
Last month, the commission denied the application by Grayscale to convert the GBTC fund into a spot Bitcoin ETF. After the ruling, Grayscale filed a lawsuit against the SEC for violating several acts. Grayscale had previously threatened that it would sue the regulator if its ETF application was rejected.
The senior legal strategist at Grayscale, Donald Verrilli, said that by rejecting the company’s application, the SEC had acted “arbitrarily and capriciously” for failing to subject cryptocurrencies to the same regulations as other investment products.
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Image and article originally from insidebitcoins.com. Read the original article here.