The U.S. Securities and Exchange Commission (SEC) has officially recognized the spot Bitcoin ETF application submitted by Franklin Templeton, a globally renowned asset manager overseeing $1.5 trillion in assets. This development coincides with the SEC’s ongoing evaluation of spot crypto exchange-traded fund (ETF) applications from various entities, including Hashdex.

Franklin Templeton’s application holds particular significance due to its substantial presence in the asset management industry.

Delays in Ether ETF Decisions

Furthermore, the SEC has announced delays in its decision-making process regarding the ether ETF applications filed by VanEck and ARK. The regulatory body operates within a maximum timeframe of 240 days from the date a filing appears in the Federal Register to either approve or reject an ETF.

As a result, the decision dates for these proposed funds are now slated for late May 2024. However, the SEC retains the authority to request additional public feedback during several interim deadlines, potentially prolonging the final decision.

SEC’s History of Delays Over Spot Bitcoin ETF Applications

The SEC has officially recognized the spot Bitcoin ETF application submitted by Franklin Templeton.

The SEC has a history of frequently utilizing the entire 240-day window to make decisions. Initial expectations for decisions on a group of ETF applications, including those from BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets, were for mid-October.

Additionally, in anticipation of a potential federal government shutdown, the SEC extended decision deadlines for spot Bitcoin ETF applications from Ark 21Shares and Global X.

Federal Appeals Court Ruling

In late August, a federal appeals court mandated the SEC to reevaluate its rejection of Grayscale Investments’ attempt to convert its Grayscale Bitcoin Trust into an ETF. This ruling shed light on inconsistencies in the SEC’s approval process for similar bitcoin products, adding complexity to the ongoing discussions and considerations surrounding crypto ETFs.

Congressman Rep Warren Davidson questioned SEC Chair Gary Gensler about his respect for the judiciary’s authority about Bitcoin ETFs. This inquiry stemmed from Gensler’s prior comment on a court ruling, which criticized the SEC’s basis for denying spot Bitcoin ETF applications as “Arbitrary and Capricious.”

Chair Gensler’s Remarks On Bitcoin ETF approval

In response to queries about the commission’s approach to revising its stance on Bitcoin ETF, Chair Gensler also emphasized that the applications for spot Bitcoin ETFs are currently under “active consideration. These developments also underscore the evolving regulatory landscape surrounding cryptocurrency ETFs, with significant implications for the broader crypto market and investment industry.

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Tanishi is an established writer in the realm of cryptocurrency and blockchain, renowned for her expertise and insightful analysis. With a deep-rooted passion for the dynamic world of digital finance, Tanishi delivers compelling news and articles that captivate a wide-ranging audience.