The SEC Initiates Public Comment Period for Spot Bitcoin ETFs
The Securities and Exchange Commission (SEC) has started a public comment period for spot Bitcoin (BTC) ETF applications earlier than expected, sparking optimism for the launch of these products.
On November 28, the SEC published filings to receive public feedback on the proposed Franklin Bitcoin ETF and Hashdex Bitcoin Futures ETF funds.
Analysts believe that this move indicates a potential acceleration in the SEC’s timeline for approving a “spotcoin” ETF. Typically, the SEC has 240 days to approve or deny an ETF filing, but by opening the public comment period earlier, they may be signaling their intention to expedite the approval process.
Bloomberg analyst James Seyffart suggests that the SEC’s decision to initiate a comment period for Hashdex confirms that they are lining up every applicant for potential approval by January 10, 2024.
Finance lawyer Scott Johnsson agrees that the SEC filings suggest the regulator is preparing to approve the funds around January 10.
Franklin Templeton initially filed for a spot Bitcoin ETF in October but faced a delay on November 15. However, they recently amended their prospectus, addressing the SEC’s questions and concerns.
SEC Expected to Approve Spot Bitcoin ETFs
The SEC has historically denied or delayed spotcoin ETFs due to concerns over market manipulation and investor protection. However, following a lawsuit loss to Grayscale Investments in August, they have been collaborating with firms to explore bringing such funds to the market.
Industry participants, including Cathie Wood of ARK Invest, believe that the SEC will approve multiple applications simultaneously to prevent any single firm from gaining a first-mover advantage.
Financial services firm Cantor Fitzgerald also believes that the long-awaited spot BTC ETF is getting closer to reality. They are confident in the approval of applications from asset managers seeking to launch a spot ETF for Bitcoin.
Currently, the SEC is evaluating 13 applications for spot BTC ETFs. However, the most recent application by Swiss-based Pando Asset is unlikely to be considered alongside the earlier submissions.
The optimism surrounding the launch of a spot Bitcoin ETF has fueled the recent rally in crypto markets, with Bitcoin reaching as high as $38,000.
Hot Take: SEC Moves Closer to Approving Spot Bitcoin ETFs
The SEC’s decision to start a public comment period for spot Bitcoin ETF applications ahead of schedule indicates a potential acceleration in the approval process. Analysts and industry participants are optimistic that multiple applications will be approved simultaneously to prevent any single firm from gaining an advantage. Financial services firm Cantor Fitzgerald believes that the long-awaited spot BTC ETF is inching closer to reality. The recent rally in crypto markets, driven by optimism about the launch of a Bitcoin ETF, further highlights the significance of this development. As we approach January, all eyes will be on the SEC’s decision regarding these ETFs, which could have a major impact on the cryptocurrency market.
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