Bitcoin Spot ETF: SEC Expected to Delay ARK Invest Decision, But BTC Investors Unconcerned With Analysts Expecting Regulator to Approve Multiple Applications at The Same Time

• Prominent figures in the cryptocurrency industry express confidence in eventual regulatory approval. 

•  Insights from Cathie Wood of ARK Investment suggest the SEC may simultaneously approve multiple spot Bitcoin ETFs. 

Two prominent cryptocurrency industry figures are making public statements indicating that they believe regulatory approval will eventually be granted.

Mike Novogratz, the CEO of Galaxy Digital, a crypto investment management firm, recently stated that he anticipates the introduction of such a financial product within the next four to six months, citing information from insider sources.

As reported by ETF analyst Eric Balchunas from Bloomberg, he made this statement during an earnings call held on Tuesday.

“Both of our contacts from the Invesco side and from the BlackRock side get you to think that this is a question of when not if.” 

According to “contacts” from inside BlackRock and Invesco spot Bitcoin ETF approval a matter of “when, not if” likely in “four to six months” — Galaxy CEO Mike Novogratz on earnings call this morning pic.twitter.com/TIhHC7xnHI

— Eric Balchunas (@EricBalchunas) August 8, 2023

In June, Galaxy joined forces with Invesco to submit a fresh application for a spot ETF, following a similar move by BlackRock. This puts them among several companies making renewed attempts at approval. Currently, the SEC is reviewing nine active applications for Bitcoin spot ETFs.

Numerous investors believe that approving a spot Bitcoin ETF could substantially increase institutional investment in Bitcoin, potentially driving up the asset’s value significantly. Consequently, applicants are in a race to secure the initial approval, aiming to seize the majority of the market share right from the start.

Novogratz further stated,

“We’re going to fight like cats and dogs to win market share there once it gets approved. It’s a big, big deal.”

Cathie Wood’s Insights on Crypto ETFs

According to reports, Cathie Wood, ARK Investment Management’s founder, and CEO, has indicated that the U.S. Securities and Exchange Commission (SEC) might simultaneously approve multiple spot Bitcoin exchange-traded funds (ETFs).

JUST IN – SEC required to give a 👍 or 👎 to ARK’s application for a #Bitcoin ETF by Aug. 13 👀 (CNBC) pic.twitter.com/bb86p47Hya

— Simply Bitcoin (@SimplyBitcoinTV) August 7, 2023

In an interview with Bloomberg on August 7th, Wood forecasted that if the SEC decides to move forward with any of the applications currently under review, it could approve “more than one [ETF] at once.” ARK Investment Management submitted one of the more recent spot Bitcoin ETF applications in June, and they modified the submission to include a surveillance-sharing agreement.

Wood’s comments echoed a suggestion by Grayscale, the company currently in a legal battle with the SEC regarding its application to convert its Bitcoin Trust into a spot Bitcoin ETF. Last month, Grayscale’s legal team submitted a letter to the SEC, urging the regulator to grant simultaneous approval to all the proposed spot Bitcoin ETFs. This approach aims to prevent any single ETF from gaining an unfair advantage over the others.

To date, the U.S. SEC has never approved a spot cryptocurrency ETF. However, it has permitted listing ETFs tied to cryptocurrency futures and even a leveraged Bitcoin futures ETF from Volatility Shares Trust. Currently, the SEC possesses crypto ETF applications from a range of entities, including Invesco, BlackRock, Valkyrie, VanEck, Wisdom, Fidelity, and ARK Invest.

Wood indicated that the SEC will likely grant an extension to ARK Invest’s spot BTC ETF application deadline. The U.S. regulatory body has until August 13th to decide whether to approve, reject, or postpone ARK’s current application, possibly through an extended review or comment period. Since ARK submitted the paperwork in May 2023, the SEC has a maximum period of 240 days, which means they have until January 2024 to make a final determination.

Heads up, bitcoin ETF news tomorrow. A delay is almost a certainty and likely fully priced in. If by any chance the SEC approves or rejects the ARK ETF, prices will run and not look back. https://t.co/SXuIWcX7nd

— Alex Krüger (@krugermacro) August 11, 2023

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