The commission has granted itself an extra 60-day deadline period for deliberating the potential inclusion of ARK 21Shares’ investment fund on the Cboe BZX Exchange, establishing a definitive cutoff date of January 10th.

The United States Securities and Exchange Commission (SEC) is utilizing the full allowable timeframe to make a decision regarding a proposed Bitcoin (BTC) exchange-traded fund (ETF) by ARK 21Shares.

In a notice dated September 26, the SEC announced its intention to extend the review period for the proposed rule change, which would permit the introduction of ARK 21Shares’ BTC ETF on the Cboe BZX Exchange. The previous extension, granted on August 11, had given the SEC until November 11 to decide on approval, disapproval, or another postponement.

“The Commission has determined it is appropriate to extend the timeframe for issuing an order to approve or disapprove the proposed rule change, ensuring ample time for thorough consideration of the proposal and its associated concerns,” stated the SEC.

Interestingly, on the same day, the SEC also postponed a decision on a Bitcoin ETF application from fund manager GlobalX. It remains unclear why the SEC opted for extended review periods for spot Bitcoin ETF applications well in advance of their October and November deadlines, as the regulator typically delays decisions just a few days before the deadlines.

60-day extension to evaluate ARK 21Shares’ proposal

The SEC’s final deadline for the decision will be January 10, marking 240 days since the initial application was submitted. GlobalX’s ETF, on the other hand, faces a deadline on November 21.

The submission came in response to a letter from a coalition of four U.S. Representatives urging SEC Chair Gary Gensler to grant prompt approval to a Bitcoin ETF based on the spot market. The legislators contended that the SEC’s approval process displayed “inconsistent and biased criteria” by greenlighting ETFs associated with cryptocurrency futures while withholding approval for those linked to spot investment products.

Up until now, the SEC has yet to grant approval for any spot Bitcoin (BTC) ETF to be listed on a U.S.-based exchange. There had been widespread speculation among industry analysts that the commission might revisit pending ETF applications, particularly in light of the SEC’s recent legal setback to Grayscale in August.

As of the current moment, the impending deadlines for spot cryptocurrency ETF applications submitted by seven prominent firms — BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck, and Fidelity — are set for October. The SEC retains the authority to either extend or postpone these deadlines, potentially stretching them as far as March.