SEC Delays Decision on Ark 21Shares Bitcoin ETF Application.

The Ark 21Shares Bitcoin ETF is considered by some to have a higher chance of approval, due to the reputation and influence of its sponsors.

SEC Delays Decision on Ark 21Shares Bitcoin ETF Application.

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Ark 21Shares Bitcoin ETF. The SEC is seeking more public comments on the application, which was filed in April by Ark Invest and 21Shares, two firms that specialize in innovative and disruptive technologies.

The SEC had until August 13 to approve, reject, or delay the application, but it opted for the latter option, citing concerns about the potential for market manipulation and the adequacy of liquidity and transparency in the bitcoin market. The Securities and Exchange Commission (SEC) has invited interested parties to share their views on these issues within 21 days after the publication of its notice in the Federal Register.

The Ark 21Shares Bitcoin ETF is one of several applications for a spot bitcoin ETF, which would hold bitcoin directly and reflect its actual market price, rather than using derivatives such as futures or swaps. A spot bitcoin ETF is widely seen as a more attractive and convenient way for investors to gain exposure to the leading cryptocurrency, as it would eliminate the need for custody, trading fees, and technical complexities associated with buying and storing bitcoin.

SEC Continues Reluctance on Spot Bitcoin ETF Approvals Despite High Hopes

However, the SEC has been reluctant to approve a spot bitcoin ETF, despite approving several bitcoin futures ETFs in recent months. The Securities and Exchange Commission (SEC) has repeatedly expressed doubts about the maturity and regulation of the bitcoin market, as well as the risk of fraud and manipulation. The SEC has rejected or delayed every spot bitcoin ETF application it has received so far, including those from VanEck, WisdomTree, and Valkyrie.

The Ark 21Shares Bitcoin ETF is considered by some to have a higher chance of approval, due to the reputation and influence of its sponsors. Ark Invest is led by Cathie Wood, a renowned investor who is known for her bullish views on bitcoin and other disruptive technologies. 21Shares is a leading provider of crypto exchange-traded products in Europe, with over $1 billion in assets under management.

Wood has predicted that the SEC will eventually approve several spot bitcoin ETFs at the same time, rather than favoring one over another. She has also said that she expects approval to happen within six months. However, the latest delay by the SEC indicates that the regulator is still not ready to greenlight a spot bitcoin ETF, and that investors may have to wait longer for this highly anticipated product.

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