In a recent development that has garnered a lot of attention online, the US Securities and Exchange Commission (SEC) has opted to delay its verdict on the application for the Bitcoin Exchange-Traded Fund (ETF) of Ark Invest, triggering varied reactions across the crypto community.
The postponement serves as the latest twist in a lengthy saga, pitting the US regulator against established financial players who want to capitalize on the growing influence of the crypto market. This decision comes in connection to an amendment within the application for the exchange-traded fund, prompting the SEC to seek public input and effectively extending the timeline for potential approval, potentially stretching into 2024.
SEC’s Cautious Stance and Evolving Landscape
For some time, the SEC has been hesitant to greenlight a Bitcoin ETF, despite the increasing demand from various quarters. Against the backdrop of numerous rejections, the crypto community has been closely observing the regulatory atmosphere.
The filing from the Cboe BZX exchange, initially submitted in April, seeks to enable the listing of the Ark 21Shares spot bitcoin fund. The filing’s subsequent modifications introduced a surveillance-sharing provision, similar to a proposal by BlackRock, a leading asset management firm.
Ark 21Shares Bitcoin ETF: Pioneering the Way
At the forefront of this battle is the Ark 21Shares Bitcoin ETF, positioned as a frontrunner for a potential ETF launch. Spearheaded by Cathie Wood’s Ark Invest, this ETF has gained significant attention due to its potential to open doors for crypto assets on traditional financial platforms.
Wood’s optimism for a collective decision by the SEC on multiple ETFs adds intrigue to the unfolding narrative. This development assumes even greater significance as applications from other major players like BlackRock and WisdomTree await consideration.
Momentum Shift: The Ripple Effect
While the SEC’s cautious approach has been evident in its previous rejections of Bitcoin ETF proposals, recent developments signal a shift in the regulatory landscape. The partial legal victory for Ripple against the SEC casts uncertainty over the classification of cryptocurrencies as securities.
This legal milestone has ignited discussions around the classification of various crypto assets, potentially impacting the SEC’s overall stance. Additionally, the approval of several Bitcoin futures ETFs showcases a growing willingness to engage with the crypto industry, reflecting changing attitudes within the regulatory body.
In the immediate aftermath of the announcement on Friday, Bitcoin remained unfazed around its $29K per BTC price.
The delay in the SEC’s decision regarding the Ark 21Shares Bitcoin ETF serves as a pivotal juncture in the ongoing struggle to integrate cryptocurrency assets within traditional financial structures. As the crypto industry gains momentum and regulatory paradigms evolve, the battle for approval continues.
The eventual outcome holds the potential to reshape the financial landscape, as established players and new entrants seek common ground in the world of digital assets.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.