The Countdown to Crypto Revolution: SEC's ARK 21Shares Bitcoin ETF Decision Postponed to 2024
In a recent twist of events, the SEC has pushed the deadline for a verdict on ARK 21Shares' spot Bitcoin ETF to January 2024. This announcement reinforces the SEC's unwavering position on cryptocurrency exchange-traded funds (ETFs) and continues to keep the crypto market in suspense.
On September 26, the SEC revealed its decision to extend the timeline, citing the need for an "appropriate" duration to thoroughly evaluate the proposed rule change. Although the regulatory body has granted an additional 60 days for deliberation, the final verdict remains scheduled for January 10, 2024.
This delay comes despite strong advocacy from both Republican and Democratic lawmakers who implored SEC Chair Gary Gensler to swiftly approve the listing of spot Bitcoin ETFs. In an open letter, the bipartisan group emphasized that such a product would bolster investor protection and enhance transparency in the Bitcoin market.
Congressmen Mike Flood, Wiley Nickel, Tom Emmer, and U.S. Representative Ritchie Torres have pointed out the inconsistency in the SEC's approach, especially after the recent Court of Appeals' decision. They argue that there is no valid reason to deny applications for regulated spot Bitcoin ETFs under the current standards.
The SEC's hesitation to greenlight a spot Bitcoin ETF revolves around concerns regarding the absence of a fully regulated crypto market to mitigate potential manipulation. The agency has consistently rejected ETF applications, insisting that applicants must demonstrate adequate measures to safeguard investors against fraudulent activities.
Despite these challenges, some industry insiders like SkyBridge Capital founder Anthony Scaramucci remain optimistic. Scaramucci believes that the approval of a Bitcoin ETF could serve as a catalyst, driving Bitcoin prices higher. He even suggests that a spot Bitcoin ETF might receive the green light as early as the first quarter of 2024, potentially igniting a bullish surge in the market.
As the crypto world watches with bated breath, the SEC's delay in ruling on the ARK 21Shares Bitcoin ETF underscores the regulatory challenges that continue to surround cryptocurrency ETFs. The market remains in suspense, eagerly awaiting a decision that could potentially reshape the landscape of crypto investing in the near future. The countdown to a crypto revolution continues, with January 2024 as the date circled on every crypto enthusiast's calendar.