SEC Postpones Decision on ARK Invest and 21Shares File


The U.S. Securities and Exchange Commission (SEC) has postponed its decision on an application to launch an exchange-traded fund (ETF) based on bitcoin from asset manager ARK Invest and cryptocurrency ETP provider 21Shares.

The SEC has requested new “comments, opinions, and arguments” on the documents. You can provide them within 21 days.

On June 15, BlackRock filed an application for a spot Bitcoin ETF with the SEC. Following the financial giant, similar requests came from Valkyrie, Fidelity Investments, WisdomTree and Invesco.

At the same time, in the lists for consideration, ARK Invest c 21Shares are higher than BlackRock based on the time of submission of documents that Cathy Wood’s firm sent back in April.

The Commission later returned all applications because they did not contain sufficient information regarding the so-called joint monitoring agreement or the details of this mechanism.

Subsequently, the above-mentioned companies promptly sent updated proposals to the department. On July 14, the regulator accepted applications from BlackRock, VanEck, Invesco, Fidelity Investments and WisdomTree for consideration.

The Chicago Board Options Exchange also modified the ARK 21Shares launch document to include a joint oversight agreement to prevent fraud and market manipulation by copying part of BlackRock’s bid.

So far, the SEC has not given any approval to launch spot bitcoin ETFs. The Commission made an exception for similar products based on futures for the first cryptocurrency from ProShares and Valkyrie Investments.

However, Bernstein experts and former SEC chairman Jay Clayton assessed the chances of a new wave of applicants as high.

Recall that the head of ARK Invest, Cathy Wood, predicted a positive decision on several applications at once.

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