The SEC Acknowledges Franklin Templeton’s Spot Bitcoin ETF Application
The U.S. Securities and Exchange Commission (SEC) has officially recognized the spot Bitcoin ETF application submitted by Franklin Templeton, a global asset manager with $1.5 trillion under management. This is significant because Franklin Templeton holds a substantial presence in the asset management sector. The SEC is also considering applications for spot crypto ETFs from other entities, including Hashdex.
Delays in Decisions on Ether ETF Applications
The SEC has announced delays in its decisions regarding the ether ETF applications from VanEck and ARK. The regulatory body has a maximum of 240 days to approve or deny an ETF application. This means that the decision date for these proposed funds will likely be in late May 2024. However, the SEC can request additional public feedback during interim deadlines, potentially further delaying the final decision.
SEC’s History of Delaying Crypto ETF Decisions
The SEC has a reputation for utilizing the entire 240-day window to make decisions on ETF applications. Several firms, including BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets, were expecting decisions on their ETF applications in mid-October but faced delays. Additionally, the SEC extended the decision deadlines for spot Bitcoin ETF applications from Ark 21Shares and Global X before a potential government shutdown.
SEC Under Scrutiny for Bitcoin ETF Decisions
Congressman Warren Davidson questioned SEC Chair Gary Gensler about his respect for the authority of the Judiciary when it comes to Bitcoin ETF matters. Davidson referenced a court ruling that criticized the SEC’s basis for denying spot Bitcoin ETF applications as “Arbitrary and Capricious.” In response, Gensler stated that the applications for spot Bitcoin ETFs are under active consideration.
Hot Take: SEC Faces Pressure to Approve Crypto ETFs
The SEC’s acknowledgement of Franklin Templeton’s spot Bitcoin ETF application and the ongoing delays in making decisions on other ETF applications highlight the increasing pressure faced by the regulatory body to approve crypto ETFs. With multiple entities seeking approval for various crypto ETFs, including Bitcoin and Ether, there is growing demand from investors to have access to these investment vehicles. The SEC’s decisions will significantly impact the future of cryptocurrency investment and regulation in the United States.
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