San Diego, California, November 17, 2015: Bitcoin was invented by Satoshi Nakamoto in 2008 as a digital form of money, but nobody really knows who Satoshi Nakamoto is. Transactions are processed through peer-to-peer networks without the need for a bank, making it the first decentralized digital currency. This is a closeup of several gold plated bitcoins symbolizing the bitcoin market, modern technology, finance, internet, commerce etc.
With multiple applications already being filed for a spot bitcoin ETF, many have continued to speculate as to when the SEC is likely or not to grant its approval. To further add to the speculation, Galaxy Digital CEO Mike Novogratz quoted his sources as saying: specified This approval should come within four to six months. However, recent developments seem to indicate that the wait could be longer.
SEC stalls?
in one release As of August 11, the U.S. Securities and Exchange Commission (SEC) has decided to move the ARK 21Shares Bitcoin ETF, which could be seen as a delaying tactic by the regulator.
Cathie Wood’s ARK Invest and 21Shares had worked together again to file for another spot bitcoin ETF earlier this year after the SEC rejected previous applications. Under standard procedures, the SEC should approve or deny the filing by August 13. However, with their most recent order calling for public comment on the application for ARK 21 shares, that deadline is consequently being extended.
This gives the general public three weeks to comment further on the proposal, while the SEC has an additional five weeks to respond to any comments. Additionally, the SEC can extend the deadline by a maximum of 240 days (a move that could potentially delay a final response until January 10, 2024).
This news would most likely not come as a surprise to Cathie Wood, CEO of ARK Invest, as she predicted a delay when speaking with her Bloomberg on August 7th. She also predicted that the SEC could approve multiple Bitcoin ETF filings. Nothing is certain, however, as the regulator could also reject all requests, as it has done in the past.
BTC price finds support above $29,300 | Source: BTCUSD on Tradingview.com
Concerns about bitcoin manipulation and regulation
As the crypto community swallows the hard pill of the SEC’s latest move, some have Experts | drew attention to the SEC’s diverse use of the word “manipulation” in their most recent publication. This is worrying considering the SEC had previously denied spot bitcoin ETF applications on the grounds of possible market manipulation.
Furthermore, the SEC’s continued reference to this word could also mean that the regulator, possibly to thwart these requests, could require them to prove that Bitcoin is not a manipulated asset class.
This will no doubt be a major challenge considering that there have been cases over time that have fueled speculation that the crypto market could be manipulated by major players. Additionally, Bitcoin is a borderless and decentralized currency, and even if the SEC regulated its use in the US, the ETF market could still be manipulated by external activity from outside the US.
The SEC also raised concerns that bitcoin does not have a “regulated market or significant size,” which could impede the approval of spot-traded bitcoin ETFs. The agency noted that bitcoin futures ETFs were approved because they are regulated by the Commodity Futures Trading Commission (CFTC). Meanwhile, Bitcoin is not regulated by any authority.
Featured image from iStock, chart from Tradingview.com
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