The SEC continues to delay its XEM of Bitcoin ETF Spot and Ethereum ETF Futures applications after receiving a letter from members of Congress requesting “no discrimination against Bitcoin ETFs.”
Specifically, the SEC has delayed the approval of Ark/21Shares' Bitcoin ETF Spot fund until January 2024. In addition, Ark's application to open Ethereum ETF Futures was also delayed.
In documents released on Tuesday, the SEC said:
“The Commission has identified January 10, 2024 as the final date on which the Commission will decide on approval or disapproval of the proposed rule changes. This marks the deadline by which the agency must XEM and decide on Ark's registration.”
This is the latest SEC delay to Ark's proposal, following a delay in August and a series of other delays to proposals by rival firms in early September. BlackRock, a of the most prominent opponents, is expected to receive the SEC's response on October 17. However, this deadline is also likely to be delayed again.
Despite US lawmakers calling for immediate approval of Bitcoin ETF Spot
The SEC's move took place in the context that a group of US House of Representatives lawmakers from both the Democratic and Republican parties had just sent a petition to Chairman Gary Gensler of the US Securities Commission (SEC), suggesting that the SEC should must “immediately” approve live Bitcoin Exchange Traded Fund (Bitcoin ETF) proposals.
This letter was sent to Mr. Gensler by email before the SEC Chairman's hearing before the House Financial Services Committee on September 27 (US time).
MPs argue that approval of a licensed and regulated Bitcoin ETF would enhance protections for investors, while making cryptocurrency investing transparent and safe than.
“It is the responsibility of the US Congress to ensure that the SEC approves products that meet the standards set by Congress,” the letter said. We therefore recommend that you immediately approve Bitcoin investment products in the form of Exchange Traded Funds (ETPs).”
Even so, to date, the SEC has not approved any direct Bitcoin ETFs. This requires ETF issuers to hold Bitcoin directly. Instead, in October 2021, the SEC approved a Bitcoin Futures Contract ETF, a type of ETF linked to the price of Bitcoin Futures Contract .
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