SEC Delays Decision on ARK Bitcoin ETF: Insights & Implications

Another Delay: The SEC’s New Deadline

The U.S. Securities and Exchange Commission (SEC) has decided to extend its review period for the ARK 21Shares Bitcoin exchange-traded fund (ETF), originally filed in July 2021. Mark your calendars! The new deadline is April 3rd, giving the SEC an extra 60 days to mull over its decision. SEC Assistant Secretary J. Matthew DeLesDernier noted that it was ‘appropriate to designate a longer period’ for such a significant proposal.

The Approval Process: A Longer Wait

The approval journey for the ARK 21Shares Bitcoin ETF has been anything but swift. When it originally filed, the SEC had the option to delay its decision and gather public comments for a total of up to 180 days. As we inch closer to April 3rd, it seems like the SEC is determined to take its sweet time. After this date, however, no further delays should happen—either they approve or disapprove.

Teucrium ETF Also Under Review

In a related development, the SEC has also extended its review period for a different ETF. This one tracks Bitcoin futures from agricultural fund provider Teucrium, which initially applied in May 2021. Tip your hat to those folks waiting for their April deadlines as they can expect a decision by April 8th. Just when you thought it couldn’t get more interesting!

The Current Landscape of Crypto ETFs

So, what’s the hold-up? As of now, the SEC has been reluctant to approve ETFs that directly expose investors to cryptocurrencies like Bitcoin. However, it did clear some investment vehicles linked to Bitcoin derivatives back in October 2021. Currently, shares from Bitcoin futures-linked funds from Valkyrie and ProShares are swimming around on Nasdaq, and VanEck’s Bitcoin Strategy ETF has made its cozy home on the Chicago Board Options Exchange.

What This Means for the Future

The ongoing deliberations regarding cryptocurrency ETFs underscore the cautious approach of U.S. regulators. Investors are left in a state of suspense, balancing their hopes for a more accessible crypto investment vehicle against the reality of regulatory patience.