SEC Extends Window to Decide on ARK 21Shares Spot Bitcoin ETF Until August
The United States Securities and Exchange Commission has extended the deadline for ARK 21Shares to approve or decline bitcoin exchange-traded funds until August 30.
According to Tuesday’s filing from the SEC, the regulatory body has extended the deadline for approving or rejecting the ARK21Shares Spot Bitcoin (BTC) ETF from July 16 to August 30. The application, originally filed with the SEC. Published for comment in the Federal Register on May and June 1, a proposed rule change from the Chicago Board options exchange BZX Exchange was included.
Arch Investments partnered with Europe-based ETF issuer 21Shares to file for a spot bitcoin ETF listed on the CBOE BZX exchange in 2021, but its application was rejected by the SEC in April. Under current rules, the regulatory body can delay its decision and open the investment offer for public comment by 180 days, suggesting the SEC may provide a final reply by January 2023.
In a notice of long-term designation, SEC Assistant Secretary J. Mathieu Delesdernier said he had chosen an extension to allow “ample time to consider the proposed rule change and the issues raised therein”. The SEC has never approved ETFs with direct exposure to crypto, but has given the green light to investment vehicles involving BTC futures, including funds from Valkyrie and ProShares.
related: Grayscale Legal Officer Says Bitcoin ETF Litigation Could Take Two Years
In June, when the SEC rejected Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot BTC ETF, the investment manager filed a petition for the courts to review the regulatory body’s decision. Grayscale senior legal strategist Donald Verilli alleged in the filing that the SEC had acted “arbitrarily and complacently” by “failing to consistently apply treatment to equitable investment vehicles.”
