Want A Bitcoin Spot ETF? Then Prove BTC Is Not Manipulated, Says SEC
August 12 2023 - 2:00PM
NEWSBTC
With multiple applications for a spot Bitcoin ETF already filed,
many have continued to speculate when the SEC is likely to give its
approval or otherwise. To further add to speculations, Galaxy
Digital CEO Mike Novogratz, citing his sources, stated that
approval was likely to come within four to six months. However,
recent developments seem to suggest that the wait could be
longer. SEC Stalling? In a release dated August 11, the US
Securities and Exchange Commission (SEC) has moved to delay the ARK
21Shares Bitcoin ETF in a move that could be seen as a delay tactic
by the regulator. Related Reading: San Francisco’s SoFi Bank
Reveals Significant Holdings In BTC, ETH, And DOGE Cathie Wood’s
ARK Invest and 21Shares had collaborated again to refile for a spot
Bitcoin ETF earlier this year after the SEC rejected previous
applications. Following the standard procedures, the SEC was meant
to approve or disapprove the application by August 13. However,
with its latest order calling for public input on ARK 21 Shares
application, this deadline is consequently extended. With
this, the general public has three weeks to give further comments
on the proposal, while the SEC has another five weeks to respond to
any comments it may receive. Furthermore, the SEC can choose to
extend the deadline by 240 days at the maximum (a move that could
potentially delay a final response until Jan 10, 2024). This news
would most likely not come as a surprise to ARK Invest’s CEO Cathie
Wood, as she had predicted a delay when speaking to Bloomberg on
August 7. She also forecasted that the SEC might approve multiple
Bitcoin ETF applications. However, nothing is certain, as the
regulator could also deny all applications as it has done in the
past. BTC price finds support above $29,300 | Source: BTCUSD on
Tradingview.com Concerns Over Bitcoin Manipulation &
Regulation While the crypto community swallows the hard pill of the
SEC’s latest move, some experts have called attention to the SEC’s
multiple uses of the word “manipulation” in its latest release.
This is worrisome, considering that the SEC had previously rejected
spot Bitcoin ETF applications on the grounds of potential market
manipulation. Furthermore, the SEC’s continued reference to
this word may also mean that the regulator, maybe in a bid to
frustrate these applications, could ask that they prove that
Bitcoin is not a manipulated asset class. Related Reading:
Did XRP Price Really Hit $50 On Gemini Exchange? That will
undoubtedly be a huge ask considering that, over time, there have
been instances that raised speculations that the crypto market can
be manipulated by major players. Furthermore, Bitcoin is a
borderless and decentralized currency, and even if the SEC were to
move to regulate its use in the US, the ETF market could still be
manipulated by external activities from outside the US. The SEC
also made raised concerns about Bitcoin not having a “regulated
market or significant size,” something which could hinder the
approval of any spot-traded Bitcoin ETF. The agency pointed out the
fact that Bitcoin Future ETFs were approved because they were
regulated by the Commodity Futures Trading Commission (CFTC).
Meanwhile, Bitcoin isn’t regulated by any agency. Featured image
from iStock, chart from Tradingview.com
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