• The Securities and Exchange Commission (SEC) has filed to postpone its decision on whether to approve or deny the Ark 21Shares Bitcoin ETF for listing on BZX.
• The SEC seeks public comment from the public on whether the proposed ETF would be protected from “fraudulent and manipulative acts and practices”, as well as if the Bitcoin market is inherently susceptible to manipulation.
• This marks the agency’s first delay on the latest wave of Bitcoin spot ETF applications, possibly indicating a similar short-term fate for rival applicants.
SEC Delays Approval Of Ark’s Revised Bitcoin ETF
The Securities and Exchange Commission (SEC) has filed to postpone its decision on whether to approve or deny the Ark 21Shares Bitcoin Exchange Traded Fund (ETF) for listing on BZX. This marks the agency’s first delay in regards to approving any of the recent wave of Bitcoin spot ETF applications, potentially signifying a similar outcome for other applicants in the near future.
Questions For Public Comment
In its official letter, the SEC is seeking public comment regarding topics such as if BZX’s application would be protected from fraudulent and manipulative acts, as well as if there are any underlying issues with manipulation in regards to trading within Bitcoin markets.
Previous Attempts To Form Surveillance Agreements
In previous situations where applicants have attempted to form surveillance-sharing agreements with CME Group’s Bitcoin Futures market in order meet regulatory requirements set forth by SEC, ARK Investment Management had previously submitted a proposal back in October 2018 that was later withdrawn due to lack of approval from Coinbase – which was one of ARK’s proposed surveillance partners at that time.
New Proposal & Coinbase Involvement
Recently however, ARK submitted an updated version of their proposal that would include Coinbase as one of their surveillance-sharing partners; thus prompting questions from SEC regarding how it may affect potential fraud and manipulation attempts within these markets if Coinbase were included among these partners.
In conclusion, this new filing serves an indication that SEC wants more information about how involving Coinbase could affect potential fraud/manipulation attempts before making a final decision about whether or not they will approve or reject this proposed rule change related to ARK’s application for listing on BZX exchange.