SEC delays Ark Invest spot Bitcoin ETF application

• SEC announced the delay today, publishing a letter calling for more information from the public.
• A decision on Ark Invest spot Bitcoin ETF could come towards the end of the year.
• BlackRock and Fidelity are two of the leading firms seeking approval for a spot Bitcoin ETF.

Today’s top crypto regulation news revolves around the move by the US Securities and Exchange Commission (SEC) to delay a decision on one of the several spot Bitcoin exchange-traded funds (ETFs) before it.  

SEC has yet to approve a spot Bitcoin ETF for the US market, despite allowing multiple futures-based ones.

ETF delay largely expected

A lot of exuberance permeated the industry when global asset management and investment behemoths BlackRock and Fidelity filed proposals to offer spot Bitcoin ETFs for the US market.

With the SEC now calling for more public input for the Ark 21Shares spot Bitcoin ETF, the reaction across the crypto industry has largely been one of muted disappointment. This is because as Bloomberg ETFs expert James Seyffart highlighted on Thursday, the market had largely priced in a delay.

TIMELINE: I’ve had questions in DMs and mentions over the last few days. The next SEC deadline for #Bitcoin ETFs is @ARKInvest/@21co__’s on 8/13. That’s a Sunday so we should see a decision by tomorrow. My bet is after market close tomorrow. We are fully expecting a DELAY. pic.twitter.com/meejrBZaQp

— James Seyffart (@JSeyff) August 10, 2023

As has been the case with previous applications to face a similar trend, the regulator’s consideration for the Ark Invest ETF will now encompass further comments and review for up to 60 days. A decision could come much later in the year, with the third deadline for the Ark ETF in the second week of November and the final deadline in January 2024.

Meanwhile, the first deadline for the applications by BlackRock, Fidelity, Invesco, Valkyrie, Bitwise and WisdomTree is early next month. 

The expectation is that these will also be pushed, although as Ark Invest CEO Cathie Wood noted earlier this, the SEC may decide to approve more than one Bitcoin ETF all at once.