Battle Over Bitcoin ETF Approvals Intensifies
The US Securities and Exchange Commission (SEC) has made recent moves in the world of cryptocurrency ETFs, bringing Franklin Templeton and Hashdex closer to approval while pushing away VanEck and ARK.
SEC Considers Franklin Templeton and Hashdex Applications
Franklin Templeton and Hashdex have both applied for spot ETFs on Bitcoin, with Hashdex also seeking approval for a spot ether ETF. The SEC operates on a timeline that allows a maximum of 240 days to approve or reject an ETF application from the date of publication in the Federal Register. The decision date for these proposed funds is expected at the end of May 2024, but additional public feedback may cause further delays.
Delays in SEC Decisions
The SEC historically takes the full 240-day period to make decisions. Major players in the cryptocurrency industry, including BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets, have submitted ETF applications. Initially scheduled for mid-October, the decisions were delayed due to concerns about a possible government shutdown.
In August, a federal appeals court ruled that the SEC must reconsider its denial of Grayscale Investments’ request to turn its Grayscale Bitcoin Trust into an ETF. This decision drew attention from four members of Congress who called for the immediate approval of Bitcoin spot ETFs.
Congress Pushes for Approval
The lawmakers argue that the SEC is discriminating against spot bitcoin ETFs and reference the legal precedent set by Grayscale Investments. They believe a regulated spot bitcoin ETF would improve investor protection and transparency. They emphasize Congress’s responsibility to ensure that the SEC approves investment products according to congressional requirements.
Hot Take: Cryptocurrency ETF Landscape Faces Uncertainty
The recent actions and decisions of the SEC have brought significant attention to the cryptocurrency ETF landscape. While Franklin Templeton and Hashdex await their verdicts, the delay in decisions regarding VanEck and ARK’s ether ETFs adds uncertainty to the market. The federal appeals court ruling in favor of Grayscale Investments has prompted members of Congress to push for quick approval of spot ETFs on Bitcoin, highlighting the need for investor protection and transparency. The industry eagerly awaits the SEC’s final decisions.
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