US Bitcoin ETFs Set to Clear Way for Simultaneous Approvals Amid Delays
Summary:
The likelihood of simultaneous approvals of Bitcoin spot exchange-traded funds (ETFs) in the US has increased, following early decision delays on Franklin Templeton and Hashdex ETF applications. The SEC has postponed decision-making 34 days ahead of the January 1, 2024 deadline and has requested necessary comments on required documents for the ETFs. The SEC hopes to align every applicant for potential approval by January 10, 2024. Commercial lawyer Joe Carlasare believes the delays may increase the chances of an approval by March 2024. Currently, 12 spot Bitcoin ETFs, including bids from Grayscale and BlackRock, are awaiting SEC approval.
The prospect for simultaneous approvals of Bitcoin (BTC) spot exchange-traded funds (ETFs) in the US is now clear. This comes after an early decision to postpone Franklin Templeton and Hashdex ETFs propositions, so claim ETF specialists. On November 28, James Seyffart, a Bloomberg ETF expert, stated in a X (Twitter) post that the Securities and Exchange Commission (SEC) postponed its judgment on the applications, 34 days ahead of its January 1, 2024, decision deadline. Necessary commentaries on the documents submitted by Templeton and Hashdex for the listing and commencement of ETF trading had been requested by SEC, with a feedback and counter-argument period set to span 35 days.
Both Seyffart and his colleague Eric Balchunas estimated a 90% probability of spot Bitcoin ETF approvals by January 10 next year. Seyffart believes that the dual postponements almost affirm his suspicion of a move to align every applicant for potential approval by the January 10, 2024 deadline. Echoing his view, Balchunas also suggested on X that the SEC is probably trying to grant openings for quicker approval, "Prob looking to get them out of the way, clear runway," he posted.
However, commercial lawyer Joe Carlasare opines that the deferrals possibly increase chances of approval by March 2024. He noted that the commentary time frame for Franklin's ETF proposition has been extended to January 3, 2024. Usually, the SEC spends a maximum of three weeks to review comments. Although there is no absolute certainty, Carlasare thinks a March approval is more likely. However, "January is still likely the favorite," he further stated.
Furthermore, Franklin submitted an updated Form S-1 for its ETF on Nov. 28 — a document that serves to register securities with the SEC. This came after Seyffart earlier noted it was the only bidder yet to submit an updated prospectus. Balchunas reacted to this by stating that it somewhat seems unfair that Franklin might be allowed to launch its ETF the same day as other providers despite submitting the form months later.
Currently, there are 12 spot Bitcoin ETFs awaiting SEC verdict, including bids from Grayscale and BlackRock. Most of these bids have final decision dates in March, except for ARK Invest’s bid, which must be approved or denied by the SEC by Jan. 10, 2024.
Published At
11/29/2023 1:13:20 AM
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