The US Securities and Exchange Commission (SEC) has postponed the decisions on two spot Bitcoin ETFs awaiting approval. Franklin Templeton and Global X, which are already behind other spot Bitcoin ETF issuers in the race to approve the first spot Bitcoin ETF in the US, were already expected to face a delay for their spot Bitcoin ETF applications. The recent delay decision from the US federal regulator may cause the SEC to postpone its decisions on all pending spot Bitcoin ETFs.
SEC Delays Decisions on Franklin Templeton and Global X Bitcoin ETFs
The SEC has postponed the decisions on both Franklin Templeton’s and Global X’s spot Bitcoin ETF applications late yesterday. The fact that both companies made their initial applications later than other Bitcoin ETF issuers delayed the submission of their updated applications to the US SEC.
Bloomberg analyst James Seyffart stated that the SEC’s comment period for Bitcoin ETFs and the requirement for applications to last at least 35 days before a decision can be made, saying, “The comment period on this matter typically begins after it is published in the Federal Register, which usually takes a few days. Therefore, a decision on Global X’s application, in particular, will not come before the end of December.”
As Seyffart also pointed out, cryptocurrency investors will have to wait a little longer for the SEC to decide whether to approve the first Bitcoin-holding exchange-traded fund in the US.
Decision Expected to Affect All Spot Bitcoin ETFs
Previously, the SEC had delayed the decision on Brazilian asset management company Hashdex’s application to convert a futures-based Bitcoin ETF into a spot Bitcoin ETF. With the delay of all applications by the SEC, it is expected that the delays will affect the decisions on all current spot Bitcoin ETF applications.
Bloomberg’s senior ETF analyst Eric Balchunas said in a tweet from his personal account that he did not include WisdomTree and Franklin in the race because they applied too late and needed to withdraw. He also pointed out that the SEC could delay all spot Bitcoin ETFs, saying, “It’s been long enough. Please tell me the SEC didn’t wait for all the S-1s to be updated and the second round of comments to be published.”
Meanwhile, the SEC has started discussions with exchanges to create cash for spot Bitcoin ETFs. The SEC will ask them to make the necessary changes on this issue in the next few weeks.
