The U.S. SEC Puts Bitcoin Fund Decision on Hold
The SEC has again delayed deciding on ARK's Bitcoin fund, taking more time to hear from the public. Many US companies are eagerly waiting for a green light on similar funds.
The US Securities and Exchange Commission (SEC) has delayed a decision on a Bitcoin fund proposed by ARK Investment Management.
On Aug. 11, the SEC said it would take 21 more days to get comments from the public about the ARK 21Shares Bitcoin ETF. This is another delay in deciding if they will allow a Bitcoin fund in the US. ARK first asked for this in May, and the SEC has until January 2024 to decide.
To get approval, ARK needs to show they have a good plan in place to watch the market and keep it safe. In the past, theSEC said no to ARK's plans because they weren't sure it would protect people from fraud.
On Aug. 11, the SEC mentioned that they don't need the Bitcoin market to be regulated to approve ARK's request. However, it would be unusual if it was regulated.
Cathie Wood, the boss of ARK, thought the SEC would delay their decision. But, she also thinks the SEC might approve many Bitcoin funds in the future.
Many companies in the US want to have a Bitcoin fund. BlackRock, a big company, applied in July. Some companies are even partnering with Coinbase, a crypto exchange, hoping the SEC will say yes.
Right now, the SEC hasn't approved any Bitcoin fund. But they started allowing funds linked to Bitcoin futures in 2021. Another company, Grayscale, is fighting the SEC in court because they won't let them have a Bitcoin fund.
