The crypto community has 21 days to give comments on ARK 21Shares Bitcoin ETF.
The verdict on ARK Investment Management's proposed spot Bitcoin exchange-traded fund (ETF) is yet to be finalized, as the US Securities and Exchange Commission (SEC) opts for another delay.
Recent updates from August 11th reveal that the SEC is paving the way for public engagement. The securities regulator has announced a 21-day public comment period for the ARK 21Shares Bitcoin ETF following its official release in the Federal Register.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is a Crypto Mining Rig? Is it Worth it? (EASILY Explained)
This move signifies an added pause in the SEC's ongoing contemplation of whether to embrace or reject US-based spot crypto ETFs.
ARK had submitted its ETF listing proposal back in June, allotting the SEC a window stretching to January 2024, based on their 240-day review framework, to make a conclusive decision.
One of the criteria for a successful listing on the Cboe BZX Exchange, which ARK Investment Management is vying for, the firm must establish the presence of a “comprehensive surveillance-sharing agreement in place with a regulated market of significant size.”
Past interactions highlight the SEC’s skepticism towards ARK's crypto ETF applications, driven by apprehensions over potential risks and the efficacy of investor protection mechanisms. In their August 11th statement, SEC clarified:
The regulated market of significant size test does not require that the spot bitcoin market be regulated in order for the Commission to approve this proposal, and precedent makes clear that an underlying market for a spot commodity or currency being a regulated market would actually be an exception to the norm.
It is worth noting that the ARK Investment Management head Cathie Wood was anticipating the SEC's delay. Yet, she remained optimistic, hinting at a possibility where the SEC might, in one sweep, endorse multiple spot BTC ETFs in the near horizon.
ARK isn't navigating the spot Bitcoin ETF terrain alone. A handful of US-based firms are actively seeking regulatory consent to launch their spot crypto ETFs. Notably, BlackRock embarked on its application journey this past July.
The journey of securing approvals for spot Bitcoin ETFs is replete with twists and turns. With the SEC's recent move, there's not just a pause but also an opportunity: a chance for industry stakeholders and enthusiasts to voice their thoughts and potentially shape the trajectory of the final outcome.
