TL; DR Breakdown
- ARK Invest is tabling an ETF proposal
- SEC is dragging its feet in approving ETFs
- There are issues to be solved
The battle to get a Bitcoin ETF approved has intensified as ARK Invest, in conjunction with 21Shares, becomes the latest entity to submit a proposal to the US Securities and Exchange Commission (SEC). SEC is the body that the markets look to for regulation in the United States.
The news of the new proposal was broken in a twitter post by a Bitcoin-friendly twitter magazine. Cathie is the founder and CEO of ARK Invest, an investment firm with $29 billion worth of assets under its management.
SEC has been reluctant
This isn’t the first Bitcoin ETF proposal to be tabled before the US SEC. A number of other entities, including the Winklevoss brothers, have submitted their proposals in the recent past. However, it appears that the SEC has been particularly reluctant to approve any of the proposals.
According to SEC, these proposals need to be refined to fully satisfy the commission’s set threshold for serious consideration. Many of the issues that need to be ironed out in the proposals have to do with security and market authenticity. Just last week, the commission postponed a decision sitting for an ETF.
When to expect a Bitcoin ETF
Bitcoin is a fairly new kind of digital asset employing blockchain technology to run its secure network. This system has been running nonstop for the past decade. Indeed, Bitcoin is the pioneer crypto that has inspired the creation of thousands of other crypto projects. However, the crypto space, while popular, has been plagued by a number of issues that have threated to keep investors away.
Some of these issues, as cited by SEC, include market manipulation, security of customer funds, money laundering and use of cryptos in criminal activities like drug trafficking. The US SEC has made it clear that it will have no problem approving an ETF if and when these thorny issues are solved. Of late, various interested entities have been working to iron out these issues and present the most workable ETF proposal to the SEC. Also, the appointment of a Bitcoin-friendly regime to run SEC is an added advantage. Is ARK Invest’s proposal the ultimate winner? Time will tell.