The crypto sphere is buzzing again, and this time, the spotlight is on the Securities and Exchange Commission (SEC) and its indecision on the much-anticipated spot Bitcoin ETF. In their latest move, the SEC has hit the pause button for the third time on ARK Invest and 21 Shares’ proposal for a bitcoin fund.
The Backstory: ARK, 21 Shares, and the Waiting Game
The genesis of this episode dates back to April when Cathie Wood’s ARK Invest, in collaboration with 21 Shares, put forward their proposal for a spot bitcoin ETF. Initially, the investment world was on the edge of its seats, expecting a verdict by November 11. However, the SEC has now granted itself an extension until January 10 to seal the fund’s fate.
The Ripple Effect: What’s at Stake for Others
This move isn’t just causing ARK and 21 Shares to bite their nails. Powerhouses like BlackRock and Fidelity are also in the waiting lounge for the SEC’s green signal. Meanwhile, GlobalX, which unveiled its bitcoin ETF aspirations in August, was served a delay notice for its application this week.
The Larger Narrative: Lawmakers, Gensler, and the Crypto Terrain
Interestingly, the SEC’s repeated deferrals haven’t gone unnoticed. Several members from the House Financial Services Committee have penned down their thoughts to SEC chief Gary Gensler, emphasizing the need for faster approvals. They highlighted that a spot bitcoin ETF shouldn’t be viewed any differently from other crypto futures ETFs, especially since some have already received the regulatory nod.
However, Gensler’s perspective seems more cautious. The aftermath of FTX’s downfall in 2022 still lingers, and this year, he’s locked horns with prominent platforms like Binance and Coinbase. His recent comments further underscore his belief that the crypto sector still harbors fraudulent activities.
Bottom Line for Investors and Entrepreneurs
While the crypto universe awaits the SEC’s final verdict on the spot bitcoin ETF, this ongoing saga underscores the broader dialogue on crypto regulations. Entrepreneurs and investors should keep a keen eye on these developments, as they will undoubtedly shape the contours of the crypto landscape in the coming months.