SEC Delays Decision on Spot Bitcoin ETFs, Setting Stage for Potential Approvals in January

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Yesterday, the United States Securities and Exchange Commission (SEC) announced a delay in its decision on the proposed spot Bitcoin exchange-traded fund (ETF) applications by Franklin Templeton and Hashdex. This delay extends the timeline for the last two of 12 spot Bitcoin ETF applicants, who were awaiting their second deadline decision by January 1. The SEC is seeking public input on these proposals by requesting written comments on the applicants’ Forms 19b-4. This move by the SEC has surprised analysts and has led to speculation that it may set the stage for a wave of approvals in early January. However, it is important to note that these approvals are for the 19b-4 applications and not the S-1s, so immediate launch is not guaranteed. Finance lawyers have suggested that the early decision by the SEC was likely aimed at concluding the comment period before January 10, in order to enable simultaneous approvals. The rationale behind the delay is that the SEC wanted to give itself enough time to review comments received during the comment period for another applicant, Global X, which ends on December 29. By starting the clock early on the 35-day deadline for Franklin Templeton and Hashdex, the SEC can align the approval process for all 12 spot Bitcoin ETF applicants and potentially issue simultaneous approvals before the January 10 deadline. This move by the SEC is seen as an effort to maintain fairness in the race for the first spot Bitcoin ETF.

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