The Securities and Exchange Commission (SEC)’s decision to start a public comment period for spot Bitcoin (BTC) ETF applications earlier than expected has generated hope and excitement for the imminent launch of these products. This move indicates a potential acceleration of the SEC’s timeline for approving a spotcoin ETF.
Public Comment Period Initiates Momentum
On November 28, the SEC published filings instituting proceedings to receive public feedback on the proposed Franklin Bitcoin ETF and Hashdex Bitcoin Futures ETF funds. Analysts believe that this step taken by the SEC aligns with their intention to expedite the approval process for spotcoin ETFs, rather than adhering to the traditional 240-day timeline. The SEC surprise opened the public comment period earlier than expected, signaling a potential commitment to approving these funds sooner.
“The SEC’s decision to initiate a comment period for Hashdex all but confirms for me that this was likely a move to line every applicant up for potential approval by the Jan. 10, 2024 deadline.” – James Seyffart, Bloomberg analyst
The expedited timeline for the spotcoin ETFs is further supported by finance lawyer Scott Johnsson’s observation that “the SEC filings suggest the regulator is preparing to approve the funds around Jan. 10.”
Franklin Templeton’s Application and SEC Collaboration
Franklin Templeton, a firm managing approximately $1.5 trillion in assets, initially filed for a spot Bitcoin ETF in October. However, their filing faced a delay on November 15. Nevertheless, the firm demonstrated their dedication to address the SEC’s questions and concerns by amending their prospectus on November 29.
The SEC has historically been cautious with spotcoin ETFs due to concerns over market manipulation and investor protection. However, after a significant lawsuit loss to Grayscale Investments in August, the agency underwent a shift in its approach. The SEC started collaborating more closely with a dozen firms to explore the possibility of introducing spotcoin ETFs into the market.
“I believe the SEC will approve multiple applications simultaneously to prevent any single firm from gaining a first-mover advantage.” – Cathie Wood, ARK Invest
This collaborative effort between the SEC and the industry has sparked renewed optimism. Cantor Fitzgerald, a reputable financial services firm known for its prime brokerage and investment banking services, believes that the long-awaited spot BTC ETF is inching closer to reality. They have grown confident in the approval of applications from asset managers seeking to launch a spot ETF for Bitcoin.
At present, the SEC is evaluating 13 applications for spot BTC ETFs. While the most recent application by Swiss-based Pando Asset, submitted just two days ago, is unlikely to be considered alongside the earlier submissions, the industry is hopeful for the approval of multiple applications in the near future.
It is worth noting that the optimism surrounding the launch of a spot Bitcoin ETF has fueled the recent rally in crypto markets. The price of Bitcoin soared to as high as $38,000, reflecting the market’s anticipation and enthusiasm for these forthcoming investment products.
