ARK, 21Shares Apply for Bitcoin Spot ETF for the Third Time, Analyst: Spot ETF Expected to Launch in the Middle of the Year

Institutional submission of Bitcoin spot ETF applications, or the number of times the SEC has rejected Bitcoin spot ETFs, has become so frequent that it is no longer news. However, a Bloomberg ETF analyst mentioned that the SEC is currently attempting to expand the definition of exchanges. He believes that once all cryptocurrency exchanges are regulated by the SEC, there will be no reason for the SEC to reject spot ETF applications.

Bitcoin Spot ETF Rejection Repeatedly by the SEC

According to previous reports, Ark and 21Shares first applied to list a Bitcoin spot ETF on June 28, 2021, which was rejected by the SEC in April 2022 for not meeting trading regulatory standards.

Ark and 21Shares made a second application in May 2022, which was rejected again by the SEC on January 26 this year, citing failure to "demonstrate that their proposal meets requirements to prevent fraud, other malicious behavior, etc."

According to the submitted document, Ark and 21Shares submitted a third Bitcoin spot ETF application on April 25.

Bloomberg Analyst: Bitcoin Spot ETF Likely to Come to Fruition Mid-Year

Bloomberg's senior analyst Eric Balchunas, who previously predicted that the SEC would approve a Bitcoin futures ETF, pointed out that as the SEC seeks to expand the definition of exchanges, if exchanges are indeed regulated by the SEC in the future, the rules of the "Exchange Act" will also change.

Once cryptocurrency exchanges are formally compliant, the reasons the SEC previously rejected a Bitcoin spot ETF will no longer be valid.

New note out on why we think spot bitcoin ETFs will get approved in early Summer 2023. The SEC is proposing to expand the definition of "exchange" which would bring crypto platforms under SEC reg. After that (which could take a year) look for ETFs to get green light via @JSeyff pic.twitter.com/TtFgFXrJ8h

— Eric Balchunas (@EricBalchunas) March 24, 2022