The US Securities and Exchange Commission (SEC) has postponed its decisions on spot Bitcoin (BTC) exchange-traded fund (ETF) applications submitted by Global X and Franklin Templeton.
In a Friday filing, the agency said it expects public comments on Global X’s proposal in the next 35 days, making the new deadline as Dec. 22.
The deadline for the Global X Bitcoin Trust, which was filed in partnership with Cboe BZX exchange, was Friday.
In a seperate filing, the SEC announced that it will also extend its decision-making period for a spot Bitcoin ETF from Franklin Templeton.
That application was submitted on September 26 and published for comment on October 3.
The SEC identified November 17 as its first decision deadline; now, it has instituted a longer decision period to approve or disapprove the application by early 2024.
ETF analyst James Seyffart confirmed the delays in a recent post on X (formerly Twitter).
— James Seyffart (@JSeyff) November 17, 2023
On Friday, Seyffart tweeted that the SEC’s ruling on the filings from Global X and Franklin had been delayed as anticipated.
Seyffart further explained that a public comment period of at least 35 days suggests that Global X is unlikely to receive a verdict until the end of 2023.
Regarding Franklin’s application, Seyffart noted that he did not come across the information on the SEC’s website or seen any discussions about it.
The SEC has the authority to delay proposals for up to 240 days from the initial filing.
With these recent postponements, the regulatory body has signaled its intention to use the full allotted review window for the current spot bitcoin ETF applicants.
SEC Maintains Stance Despite Mounting Frustration
Despite mounting frustration within the industry, the SEC has maintained its usual non-transparent approach to crypto ETFs.
The SEC previously announced delays in making decisions on two other crypto ETF applications, namely Hashdex’s proposal to convert its Bitcoin futures ETF into a spot ETF and Grayscale’s application for an Ethereum futures ETF.
It is worth noting that some industry experts have already claimed that the SEC is not likely to approve a spot Bitcoin ETF before 2024.
The optimism around the launch of a spot Bitcoin ETF has fueled the recent rally in crypto markets, which saw the flagship cryptocurrency reach as high as $38,000.
Meanwhile, analysts at financial services firm Cantor Fitzgerald believe the long-awaited spot BTC ETF is inching closer to reality.
The SEC has been hesitant to approve a spot bitcoin ETF due to concerns about potential manipulation on offshore spot platforms.
However, Cantor Fitzgerald believes that the market surveillance procedures proposed by new applicants could address these worries and sway the SEC towards approval.
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