With a number of purposes for a spot Bitcoin ETF already filed, many have continued to take a position when the SEC is probably going to provide its approval or in any other case. To additional add to speculations, Galaxy Digital CEO Mike Novogratz, citing his sources, said that approval was prone to come inside 4 to 6 months. Nevertheless, current developments appear to counsel that the wait might be longer. 

SEC Stalling?

In a launch dated August 11, the US Securities and Change Commission (SEC) has moved to delay the ARK 21Shares Bitcoin ETF in a transfer that might be seen as a delay tactic by the regulator. 

Cathie Wooden’s ARK Make investments and 21Shares had collaborated once more to refile for a spot Bitcoin ETF earlier this yr after the SEC rejected earlier purposes. Following the usual procedures, the SEC was meant to approve or disapprove the applying by August 13. Nevertheless, with its newest order calling for public enter on ARK 21 Shares utility, this deadline is consequently prolonged. 

With this, most people has three weeks to provide additional feedback on the proposal, whereas the SEC has one other 5 weeks to reply to any feedback it might obtain. Moreover, the SEC can select to increase the deadline by 240 days on the maximum (a transfer that might probably delay a remaining response till Jan 10, 2024).

This information would most probably not come as a shock to ARK Make investments’s CEO Cathie Wooden, as she had predicted a delay when chatting with Bloomberg on August 7. She additionally forecasted that the SEC may approve a number of Bitcoin ETF purposes. Nevertheless, nothing is for certain, because the regulator may additionally deny all purposes because it has performed up to now.

BTC worth finds help above $29,300 | Supply: BTCUSD on Tradingview.com 

Issues Over Bitcoin Manipulation & Regulation

Whereas the crypto neighborhood swallows the arduous capsule of the SEC’s newest transfer, some consultants have known as consideration to the SEC’s a number of makes use of of the phrase “manipulation” in its newest launch. That is worrisome, contemplating that the SEC had beforehand rejected spot Bitcoin ETF purposes on the grounds of potential market manipulation. 

Moreover, the SEC’s continued reference to this phrase might also imply that the regulator, perhaps in a bid to frustrate these purposes, may ask that they show that Bitcoin shouldn’t be a manipulated asset class. 

That may undoubtedly be an enormous ask contemplating that, over time, there have been cases that raised speculations that the crypto market may be manipulated by main gamers. Moreover, Bitcoin is a borderless and decentralized forex, and even when the SEC have been to maneuver to manage its use within the US, the ETF market may nonetheless be manipulated by exterior actions from outdoors the US.

The SEC additionally made raised issues about Bitcoin not having a “regulated market or important dimension,” one thing which may hinder the approval of any spot-traded Bitcoin ETF. The company identified the truth that Bitcoin Future ETFs have been permitted as a result of they have been regulated by the Commodity Futures Buying and selling Commission (CFTC). In the meantime, Bitcoin isn’t regulated by any company.

Featured picture from iStock, chart from Tradingview.com