Benzinga - The U.S. Securities and Exchange Commission (SEC) once again postponed its verdict on the spot Bitcoin (CRYPTO: BTC) exchange-traded fund (ETF) put forward by ARK Investment Management.
The SEC on Aug. 11 initiated a 21-day public comment window for the ARK 21Shares Bitcoin ETF, marking another delay in the regulator's decision-making process concerning the approval of a spot crypto ETF in the U.S.
ARK's initial application to list the ETF was submitted in May, granting the SEC up to 240 days, or until January 2024, to finalize its stance.
To achieve a listing on the Cboe BZX Exchange, which is ARK Investment Management's target, an applicant must demonstrate the existence of a "robust surveillance-sharing agreement with a sizable regulated market."
The SEC has previously turned down the company's crypto ETF submissions, asserting that it lacked adequate measures to "thwart deceptive and manipulative activities" and ensure investor safety.
In its statement, the SEC clarified, "The test for a regulated market of significant size doesn't mandate the spot Bitcoin market's regulation for the Commission's approval.
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Historically, the underlying market for a spot commodity or currency being regulated has typically been an outlier.
ARK Investment Management is among several U.S. entities trying to have a spot crypto ETF listed on an official exchange.
Notably, BlackRock Inc (NYSE: BLK), the world's premier asset management entity, submitted its proposal in July.
Several companies have also revised their applications to incorporate cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) as a surveillance-sharing ally, following indications that SEC representatives might be more receptive to a spot crypto ETF under such terms.
As of the Aug. 11 update, the SEC hasn't greenlit any spot crypto ETF listing proposals in the U.S., though since October 2021, it has permitted investment structures associated with BTC futures.
Presently, Grayscale is embroiled in a legal dispute with the SEC due to the latter's denial to list Grayscale's Bitcoin Trust as a spot Bitcoin ETF.
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