- The U.S. Securities and Exchange Commission (SEC) has decided to delay the decision on ARK Invest 21Shares and Global X spot Bitcoin Exchange-Traded Fund (ETF) applications.
- The decision to delay comes quite early and precedes an announcement by SEC Chairman Gary Gensler scheduled for September 27, 2023, before the Financial Services Committee.
- Bloomberg ETF analyst James Seyffart believes this decision may have dashed hopes for ETF approval in 2023.
SEC decided to extend the review period for the spot Bitcoin ETF of 2 investment firms; Will other ETF applications also be postponed in October?
SEC Delays Decision for ARK and Global X
The U.S. Securities and Exchange Commission (SEC) has decided to delay the decision on ARK Invest 21Shares and Global X spot Bitcoin Exchange-Traded Fund (ETF) applications. This could narrow down the chances of any spot ETF approval in 2023.
According to the SEC’s latest update regarding ARK Invest 21Shares and Global X applications, the agency is requesting more time for action on the proposed rule change. Considering that the decision on ARK Invest’s application is supposed to be made by November 11, 2023, the decision to delay comes quite early and precedes an announcement by SEC Chairman Gary Gensler scheduled for September 27, 2023, before the Financial Services Committee.
In a statement by the SEC regarding the applications from ARK Invest and Global X, it states:
“Notice of designation of a longer period for Commission action on a proposed rule change…”
Could 2024 Be the Year for Approval?
Therefore, Bloomberg ETF analyst James Seyffart believes this decision may have dashed hopes for ETF approval in 2023. Decisions on other applications like BlackRock, Bitwise, and Wisdomtree are expected in the third week of October 2023. Will there be updates on these applications soon?
According to Seyffart, “If they’ve looked at the ARK/21Shares application, we may see delays across all other applications today. BlackRock, Bitwise, VanEck, Invesco, Wisdomtree, Fidelity, and Valkyrie all conclude in mid-October.”
It was only on September 12, 2023, that Franklin Templeton, a major financial firm, joined the list of contenders for the first spot Bitcoin ETF approval in the U.S. However, according to COINOTAG, the investment management company has not yet filed the crucial 19b-4 as part of the approval process.
