SEC Extends Review Period for ARK 21Shares Bitcoin ETF

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Key Takeaways

* The U.S. Securities and Exchange Commission (SEC) extends the review period for the ARK 21Shares Bitcoin ETF proposal till January 10, 2024.

*   The delay follows the regulator's previous postponement, pushing the decision 240 days post the initial application.

*   This extension aligns with the SEC's recent deferment on GlobalX's Bitcoin ETF, amidst calls from U.S. Representatives for swifter approvals.

The Securities and Exchange Commission (SEC) has deferred the decision on the ARK 21Shares Bitcoin ETF application, extending the review period till January 10, 2024, as per the notice released on September 26, 2023. This move marks the second delay following the prior postponement on August 11, which had set November 11 as the decision deadline.

The ARK 21Shares proposal, aimed at listing a spot Bitcoin ETF on the Cboe BZX Exchange, has been under the SEC's scrutiny since its filing on April 25, 2023. The regulatory body published the proposed rule change for public commentary on May 15, 2023, initiating a timeline for approval or disapproval.

Extended Review Period

The extension comes as the SEC invokes Section 19(b)(2) of the Securities Exchange Act of 1934, allowing for a 60-day extension beyond the initial 180-day review period. This provision facilitates the Commission in ensuring ample time for a thorough examination of the proposed rule change, especially as it underwent three amendments, with the latest being on July 11, 2023.

The regulatory body emphasizes the necessity of this elongated timeframe to adequately address the issues encapsulated in the amended proposal. This move resonates with the SEC's similar postponement concerning GlobalX's Bitcoin ETF offering, further accentuating