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SEC Delays Decision on ARK 21Shares Bitcoin ETF

ARK 21Shares Bitcoin ETF SEC
By Nicolo Finazzi
Nicolo Finazzi

3 Min

August 14, 2023
  • US SEC delays decision on ARK 21Shares Bitcoin ETF, extending the wait for the product.
  • Delays stem from ongoing concerns over fraud and manipulation.
  • The industry has high hopes for multiple ETF approvals, especially in light of recent applications.

The US Securities and Exchange Commission (SEC) has delayed its decision on the ARK 21Shares Bitcoin ETF application. This has caused further waiting time for the much-anticipated offering. Originally filed in April, the decision deadline was set for August 13. While this delay is a setback, the recent surge of ETF applications, including those from major players like BlackRock Inc., has sparked optimism within the crypto industry. At the moment, the approval of an ETF directly invested in Bitcoin remains unprecedented in the US.

For years, both the cryptocurrency community and external enthusiasts have yearned for a Bitcoin ETF. Their claim is that it would democratise Bitcoin investment and further integrate the digital asset sector into conventional financial markets. However, regulatory concerns surrounding fraud and market manipulation have consistently stalled approvals.

Simultaneously with this delay, 21Shares, in collaboration with ARK Invest, submitted paperwork for a Bitcoin futures fund. This move underscores the industry's determination to provide a variety of investment vehicles. This filing aligns with the broader industry trend, with numerous institutions seeking approval for ETFs based on Ethereum futures.

To know more about these topics, read the following articles:

ETF Delays and Grayscale Lawsuit

While crypto fans await the SEC decision on Bitcoin ETFs, it's not breaking news that delays might occur. Since their approval could reshape the landscape of cryptocurrency investments, the SEC will take the necessary time for a proper decision.

Cathie Wood, CEO and CIO of ARK Invest, had already conveyed her anticipation of a potential delay in the SEC's verdict. She also believes that, in the event of the SEC granting approval for one Bitcoin ETF, it is probable that they will approve multiple simultaneously. Recently, ARK has made revisions to its application, aligning it closely with the format of the recent submission by BlackRock.

In this scenario, there is a key decision that might push the SEC to adopt spot bitcoin ETFs. This is if Grayscale wins its lawsuit against the agency for blocking its conversion of the GBTC bitcoin trust into an ETF. Bloomberg analysts recently gave Grayscale a likely chance of winning in court. Moreover, Bloomberg raised its odds of a spot bitcoin approval to 65% from 50% on August 2nd.