Cathie Wood, a well-known figure in the world of finance, has suggested that the US Securities and Exchange Commission (SEC) might give the green light to multiple Bitcoin (BTC) exchange-traded funds (ETFs) all at once.
This marks a shift from her previous belief that her own firm, ARK Investment Management, would be the frontrunner in securing approval for this eagerly anticipated product.
Cathie Wood Advocates for Simultaneous SEC Approvals
Speaking in an interview with Bloomberg TV, Cathie Wood explained that she now envisions the SEC approving not just one, but several Bitcoin ETFs concurrently.
Her reasoning is that these ETFs are quite similar in nature, so the deciding factor would come down to how effectively each entity markets and communicates its offering.
It should also be noted that the SEC has previously rejected all proposed spot Bitcoin ETFs, including those from ARK and its partner 21Shares. Despite these setbacks, Cathie Wood sees a glimmer of hope in legislative efforts challenging the SEC’s stance. This gives her optimism regarding pending ETF proposals.
Before Wood’s comments, Bloomberg interviewers had suggested that the SEC could synchronize its approach, processing all ETF applications simultaneously. Traditionally, the SEC evaluates applications based on their filing order. However, the current scenario features multiple applications that are quite alike.
ARK filed for a Bitcoin ETF on May 15, followed by BlackRock’s more prominent application on June 15. This prompted several other firms to submit their own applications. ARK later updated its filing to align with other applications, incorporating a surveillance-sharing agreement with Coinbase.
Grayscale, which aims to convert its existing GBTC fund into an ETF, has called for equitable approval of all proposals. The argument is rooted in fairness, asserting that no single company should gain an unfair advantage or be chosen as a winner before others.
As things stand, the SEC is expected to make a decision about ARK’s Bitcoin ETF application by August 13. However, both Wood and Bloomberg interviewers speculate that a delay is probable. Wood even suggested that the deadline might pass without any decisive action.
Meanwhile, CNBC reports indicate that the SEC has the authority to extend deadlines by up to 240 days. This implies that the decision on ARK’s application might be pushed as far as January 2024, with similar extensions for other Bitcoin spot ETFs.