The most recent deadline for the SEC to make a decision on ARK Invest’s Bitcoin ETF proposal is August 13, 2023, but many expect the agency to delay its verdict further. ARK Invest is a leading investment firm that focuses on disruptive innovation and technology.
Its founder and CEO, Cathie Wood, is a vocal supporter of Bitcoin and has predicted that the cryptocurrency will reach $500,000 in the future.
Crypto Community Is Sure SEC Will Delay any Spot Bitcoin ETF
ARK Invest filed its Bitcoin ETF application in May 2023, joining several other contenders such as Bitwise, VanEck, WisdomTree, Fidelity, and Grayscale. One of the key features of ARK Invest’s Bitcoin ETF proposal is that it has a “surveillance sharing” agreement with Nasdaq and Cboe, two major stock exchanges that also list Bitcoin futures contracts.
This means that ARK Invest would share trading data, customer information, and clearing activity details with the exchanges to monitor and prevent any fraudulent or manipulative behavior in the Bitcoin market. This could address one of the main issues that the SEC has raised in the past.
However, some analysts doubt that the SEC will approve a spot Bitcoin ETF anytime soon, given its history of rejections and delays. The SEC could extend its review period by up to 240 days, pushing the final decision to January 2024 for ARK Invest’s proposal and March 2024 for other applicants. Wood herself acknowledged that there is a high probability of the SEC postponing its verdict.
On the other hand, some observers are more optimistic about the prospects of a Bitcoin ETF approval in the US. They point out that the SEC has recently approved a leveraged Bitcoin ETF, which allows investors to amplify their returns or losses by using borrowed funds.
They also note that there is a growing demand for Bitcoin ETFs in other countries, such as Canada and Brazil, where several such products have been launched successfully.
Moreover, they argue that some political factors could influence the SEC’s decision. For instance, they cite the lawsuit filed by Grayscale, the largest crypto asset manager in the world, against the SEC for allegedly delaying its application to convert its Bitcoin Trust into an ETF.
