The US Securities and Exchange Commission (SEC) has announced the postponement of its decisions on spot Bitcoin (BTC) exchange-traded fund (ETF) applications submitted by Global X and Franklin Templeton. The agency has set a new deadline of December 22 for public comments on Global X’s proposal, while the deadline for the Global X Bitcoin Trust was Friday.
Global X ETF Postponement
In a separate filing, the SEC has also extended the decision-making period for Franklin Templeton’s spot Bitcoin ETF application. The application, which was submitted on September 26 and published for comment on October 3, initially had a decision deadline of November 17. However, the SEC has now instituted a longer decision period, with a verdict expected by early 2024.
ETF analyst James Seyffart confirmed the delays in a recent post on X (formerly Twitter), stating that the SEC’s ruling on the filings from Global X and Franklin had been delayed as anticipated. Seyffart further explained that the 35-day public comment period suggests that Global X is unlikely to receive a verdict until the end of 2023. As for Franklin’s application, Seyffart noted that he did not come across any information on the SEC’s website or see any discussions about it.
With these recent postponements, the SEC has signaled its intention to utilize the full allotted review window for the current spot Bitcoin ETF applicants. Despite mounting frustration within the industry, the SEC has maintained its usual non-transparent approach to crypto ETFs. The regulatory body has previously announced delays in making decisions on other crypto ETF applications, including Hashdex’s proposal to convert its Bitcoin futures ETF into a spot ETF and Grayscale’s application for an Ethereum futures ETF.
Projections for Spot Bitcoin ETF Approval
Industry experts have already claimed that the SEC is unlikely to approve a spot Bitcoin ETF before 2024. The optimism surrounding the launch of a spot Bitcoin ETF has fueled the recent rally in the crypto markets, pushing the flagship cryptocurrency to reach as high as $38,000. However, analysts at financial services firm Cantor Fitzgerald believe that the long-awaited spot BTC ETF is inching closer to reality.
The SEC has been hesitant to approve a spot Bitcoin ETF due to concerns about potential manipulation on offshore spot platforms. However, Cantor Fitzgerald believes that the market surveillance procedures proposed by new applicants could address these worries and sway the SEC towards approval.
