SEC postpones decision on Cathie Wood’s Bitcoin ETF

abdelaziz Fathi

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again deferred their decision on whether to approve any of the proposed Bitcoin ETFs.

The new deadline to review ARK Investment Management’s and 21 Shares’ Bitcoin ETF has been shifted from July 16 to next month. Per an official document published by the Securities and Exchange Commission (SEC),  the agency needs more time to further review the proposed rule change from the Chicago Board Options Exchange (CBOE) BZX Exchange.

The regulatory body said in an extension notice that it would now give an answer on the proposal on August 30, the SEC disclosure indicates.

Cathie Wood’s ARK Investment Management and 21Shares amended its application back in May after the US Securities and Exchange Commission rejected their proposal for an ETF that would invest directly in bitcoin. As part of the changes, the Switzerland-based investment-products issuer said its product would use US Bank as a qualified custodian, hoping such a tweak will win its bitcoin exchange-traded fund application the SEC’s blessing.

A decision was expected no earlier than mid-July, 45 days from the time the applications for the funds were published in the federal register, but the SEC is yet to approve a single BTC exchange-traded fund. The latest deadline for approval or disapproval of the ARK 21Shares Bitcoin ETF is January 24, 2023.

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments received,” the SEC wrote in both notices.

There are a number of applications underway to get a bitcoin ETF listed, but so far none have been approved by the SEC. The agency only extended the deliberation window or opened the matter to public comments to avoid reaching any decision on a proposal, meaning today’s delay is no surprise.

Earlier, the regulator also pushed the deadline to make a decision on Kryptoin Bitcoin ETF, Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, and Wisdomtree Bitcoin Trust. Most recently, it denied an application by First Trust Advisors and SkyBridge, citing concerns over “fraudulent and manipulative acts and practices” in markets where bitcoin is traded.

Read this next

Digital Assets

Boerse Stuttgart Digital secures BaFin authorization for crypto custody

“This is the first time that an established market participant has been licensed to hold cryptocurrencies in custody without any acquisitions. This completes the unique infrastructure we offer: of all the traditional service providers operating in the European crypto market, we are now the only one-stop-shop that’s fully regulated by BaFin in Germany for brokerage, trading, and custody of digital assets. For banks, brokers, asset managers, and family offices, this makes us the infrastructure partner of choice.”

Executive Moves

Capital.com hires Simone Manni as Head of Marketing, Europe

“I am proud to join Capital.com, a dynamic, fast-growing FinTech company harnessing technology to disrupt traditional access to financial markets. My focus over the next few years will be to grow Capital.com’s market share across western Europe and to gain a stronger foothold in countries like Italy and Germany which boasts a mature and sophisticated trading community.”

Retail FX

Axi extends partnership deal with Manchester City

FX broker Axi, previously known as AxiTrader, has renewed its flagship sponsorship deal with soccer giant Manchester City.

Digital Assets

Russia delays digital ruble pilot to May

Russia has postponed its central bank digital currency (CBDC) pilot indefinitely, which was originally scheduled for April 1, as it awaits specific legislation to be voted before the “crypto ruble” trial.

Executive Moves

Scope Markets promotes James Hughes to head of marketing

Belize-based FX and CFDs brokerage Scope Markets has promoted James Hughes, who until recently was its head of brand, to take on an expanded role as the company’s global head of marketing.

Retail FX

Fraudsters clone Financial Commission’s website, two ex-members under suspicion

The Financial Commission, an industry-specific dispute resolution service that caters to the financial services industry, today announced that it believes a clone website has been impersonating its membership roster.

Retail FX

CMC Markets warns of operational challenges in Q1

CMC Markets PLC (LSE:CMCX) said in a trading update for the fiscal year 2023 that February and March posed a more challenging environment with lower equity volumes and a higher proportion of lower margin institutional trading activity.

Interviews

Why Is Digital PR So Important for Financial Service Providers? Buzz Dealer’s CEO Uri Samet with the Answers

Digital PR is all about spreading your message faster, wider, and stronger in the online world, through proper SEO, link-building, and organic and paid social media work.

Inside View

Why And How Are Virtual Cards Disrupting The Finance Industry

Virtual cards have the potential to revolutionize the finance industry by providing faster and more secure payments, wider acceptance, and eco-friendliness.

<