The US Securities and Exchange Commission (SEC) has recently announced the postponement of its decisions on spot Bitcoin exchange-traded fund (ETF) applications submitted by Global X and Franklin Templeton. This move by the regulatory body has raised questions and concerns within the crypto market, as investors eagerly await the launch of a spot Bitcoin ETF. In this article, we will explore the implications of these delay decisions and discuss their potential impact on the crypto market.
In a filing released on Friday, the SEC stated that it expects public comments on Global X’s proposal within the next 35 days, setting the new deadline as December 22. The deadline for the Global X Bitcoin Trust, filed in partnership with Cboe BZX exchange, was originally set for that day. The SEC also announced the extension of the decision-making period for a spot Bitcoin ETF from Franklin Templeton, with the initial deadline identified as November 17. The agency has now instituted a longer decision period, pushing the approval or disapproval of Franklin’s application to early 2024.
ETF analyst James Seyffart confirmed the delays in a recent post, expressing that the SEC’s ruling on the Global X and Franklin filings had been delayed as anticipated. Seyffart further explained that considering the minimum 35-day public comment period, Global X is unlikely to receive a verdict until the end of 2023. As for Franklin’s application, Seyffart noted a lack of information on the SEC’s website or in any discussions. It is worth mentioning that the SEC has the authority to delay proposals for up to 240 days from the initial filing.
These recent postponements by the SEC highlight the regulatory body’s intention to utilize the maximum 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. This lack of clarity and consistent delays in decision-making have fueled concerns among market participants, as they eagerly anticipate the arrival of a spot Bitcoin ETF.
The optimism surrounding the launch of a spot Bitcoin ETF has been a driving force behind the recent rally in the crypto markets, with the flagship cryptocurrency reaching highs of $38,000. However, the SEC’s cautious approach and the elongation of the decision period have dampened expectations. Some industry experts have even gone as far as to claim that a spot Bitcoin ETF is unlikely to receive approval before 2024.
Despite the SEC’s hesitance to approve a spot Bitcoin ETF due to concerns about potential offshore manipulation, analysts at financial services firm Cantor Fitzgerald believe that progress is being made. They argue that the market surveillance procedures proposed by new applicants could address these worries and sway the SEC towards approval. This cautious optimism offers a glimmer of hope for those eagerly awaiting the launch of a spot Bitcoin ETF.
The SEC’s decision to postpone its rulings on the spot Bitcoin ETF applications submitted by Global X and Franklin Templeton has created uncertainty in the crypto market. Investors and industry experts now face an extended wait for the approval or disapproval of these applications. The SEC’s non-transparent approach and frequent delays have frustrated market participants, dampening expectations for the arrival of a spot Bitcoin ETF. However, some analysts believe that progress is being made and that the proposed market surveillance procedures could address the regulatory concerns. The crypto market will continue to monitor these developments closely, as the launch of a spot Bitcoin ETF could have a significant impact on the industry’s growth and stability.
