In a surprising turn of events, the United States Securities and Exchange Commission (SEC) has moved ahead of schedule to delay its verdict on the spot Bitcoin ETF proposals from Franklin Templeton and Hashdex. This development diverges from the anticipated January 1 deadline, injecting uncertainty. Bloomberg’s ETF expert James Seyffart points out Franklin Templeton’s unique stance, being the sole issuer yet to update its S-1 prospectus, hinting at a possible synchronized approval strategy for all contenders by January 10, 2024.
SEC’s tactical maneuvering indicates simultaneous approvals
Finance attorney Scott Johnsson from Davis Polk interprets the SEC’s premature decision as a calculated step to wrap up the public commentary phase before January 10. This move could pave the way for a collective green light for all applications within the January 2 to January 10 window. This theory aligns with the impending closure of the comment period for Global X’s application on December 29.
The SEC actively solicits public feedback on these ETF proposals as part of its comprehensive evaluation approach. In the Federal Register, a 35-day window has been set for responses post-publication of Forms 19b-4, essential documents for listing and trading securities. This period is distinct from the Form S-1 submission process.
Final approval deadlines loom for ETF hopefuls
With this latest delay, the finalization timeline for the last two of the twelve Bitcoin ETF applicants has been extended. The rest are gearing up for their third review deadline, with ARK Invest approaching its ultimate decision day on January 10.
With the SEC’s announcement, Franklin Templeton updated its prospectus, suggesting a strategic alignment with the SEC’s possible synchronized approval plan. This indicates a move towards a unified launch date for the first wave of spot Bitcoin ETFs, ensuring equitable competition among the applicants.
The SEC’s decisions in the coming weeks are pivotal for the cryptocurrency market, potentially marking a significant step toward broader acceptance and institutionalization of digital assets. The regulator’s approach to public consultation and strategic decision timing showcases the intricate nature of cryptocurrency regulation. As the industry awaits these critical verdicts, the SEC’s actions will likely influence the future trajectory of digital asset investments and their integration into the mainstream financial sector.