By George Ward
Addressing The Spot Bitcoin ETF Buzz
Despite the delay in approving Hashdex and Franklin Templeton’s ETFs, the United States is on the verge of approving several spot Bitcoin exchange-traded funds (ETFs) simultaneously. According to Bloomberg ETF expert James Seyffart, the US Securities and Exchange Commission’s (SEC) action will pave the way for a more efficient approval process.
The ETF expert added that the decision, which was initially delayed, is a positive step forward in regulatory evaluations. According to Seyffart, the SEC will start allowing public comment on the required forms for these ETFs, and it would be an essential step toward their listing and subsequent trading.
This 35-day comment period allows stakeholders to express their opinions or concerns about the imminent launch of the ETF products. Seyffart noted that delay is not a barrier but an opportunity for fresh perspectives and input.
It allows the SEC to consider various opinions and data before deciding. Analysts see this as a watershed moment, as the successful launch of Bitcoin spot ETFs could pave the way for traditional investors to gain greater access to the crypto market.
The crypto regulatory landscape is gradually changing, and the SEC’s handling of these ETF applications is a crucial indicator of this shift. Hence, market participants and industry players eagerly await the results of the upcoming comment period, which they believe will spur a historic green light for a spot Bitcoin ETF in the US.
The Critical Deadline
Furthermore, Bloomberg analysts James Seyffart and Eric Balchunas predict a 90% chance of a spot Bitcoin ETF approval by January 10, 2024. According to Seyffart, the recent delays in ETF decisions were strategic moves to align all applicants for possible support by this critical deadline.
Balchunas agreed with Seyffart, stating that the regulator’s actions were to quickly address pending applications, effectively creating a clear path for potential approvals. Despite the analyst’s optimism, commercial litigator Joe Carlasare believes Franklin’s ETF bid will be approved in March 2024 due to the extended comment period up to January 3, 2024.
Carlasare based his estimate on the SEC’s typical three-week comment review timeline. However, the legal counsel admits that the January deadline is possible after revising his estimate to between January 5 and January 8. Regardless, experts agree that January remains the likeliest date for spot BTC ETF approvals.
Rising Spot Bitcoin ETF Applications
Meanwhile, reports indicate that Franklin has submitted an updated Form S-1 for its ETF application to the SEC. This form is used to register securities and is essential for approval. Seyffart previously stated that Franklin was the only applicant who had not yet submitted an updated application.
Following this updated filing, Balchunas expressed his preference for simultaneous ETF launches, although he’s concerned about fairness. He pointed out that allowing Franklin’s to launch on the same day as others may appear unjust since the asset manager didn’t update its filing on the same date.
The securities watchdog has 12 Bitcoin ETF applications to approve, including submissions from top players like BlackRock and Grayscale. However, the majority of these ETFs have final decision dates in March.
The only exception is ARK Invest’s bid; it has an SEC approval or denial deadline of January 10, 2024.