As the struggle to acquire approval to offer a spot Bitcoin exchange-traded fund (ETF) from the United States Securities and Exchange Commission (SEC) continues, the Ark 21Shares spot Bitcoin ETF application has been faced with a roadblock as the financial regulator delays its final decision. The financial agency requested comment on the proposal.
The Bitcoin ETF is a publicly-traded financial product that will allow investors to gain exposure to Bitcoin’s price. Although the asset has been launched in some parts of the world, it has yet to receive a green light from U.S. regulators after the SEC refused to approve digital asset investment firms to offer the financial product within the country.
Is It the End?
Since 2021, Ark Invest and 21Shares have joined forces to issue an application for a spot Bitcoin ETF to the SEC. Even though the SEC rejected its application in the past, the duo companies applied for the financial product once again a few months ago.
The latest application outlined that the financial regulator has 240 days to either approve or dismiss the financial product. The timeframe was broken into four periods – 45 days, 45 days, 90 days, and 60 days.
At the end of the first three periods, the regulatory watchdog must give a response, stating whether it will approve the spot Bitcoin ETF or mention that it needs additional time to make a decision. The agency delayed its decision back in June, bringing the next deadline to August 13th.
Since the U.S. SEC has now shifted the date further, its new deadline will be November 11th. The final 60-day deadline will be on January 10th.
In its latest notice, the SEC opened a 21-day comment period for the proposal for the financial product to the public.
Delay Not Surprising
Although several crypto enthusiasts are eager for the SEC to approve a Bitcoin ETF, the latest delay from the agency is not entirely surprising. Ark Invest CEO Cathie Wood, for example, stated earlier this week that the financial regulator will likely postpone the final decision on the financial product.
She added that if the agency were to approve the trading of spot Bitcoin ETF, it will likely give simultaneous approval to a cohort of companies who have already applied over the past few months.
