- The U.S. Securities and Exchange Commission (SEC) has officially accepted the spot Bitcoin ETF application from Franklin Templeton, a global asset manager with $1.5 trillion in assets under management.
- The regulatory agency has a maximum of 240 days from the date an ETF appears in the Federal Register to approve or reject it.
- At the end of August, a federal appeals court mandated that the SEC reconsider its decision to reject Grayscale Investments’ proposal to convert the Grayscale Bitcoin Trust into an ETF.
The spot Bitcoin ETF application made by the giant asset management company Franklin Templeton was examined with the approval of the SEC.
SEC Reviewing Franklin Templeton’s Application
The spot Bitcoin ETF application made by major asset management company Franklin Templeton has been officially accepted for review by the U.S. Securities and Exchange Commission (SEC). This move coincides with a period in which the SEC is also considering spot crypto exchange-traded fund (ETF) applications from other organizations like Hashdex. Franklin Templeton’s application is particularly notable due to its significant presence in the asset management sector.
Additionally, the SEC has announced delays in its decisions regarding ether ETF applications made by VanEck and ARK. The regulatory agency has a maximum of 240 days from the date an ETF appears in the Federal Register to approve or reject it. This places the decision date for the proposed funds in late 2024. However, the SEC can further delay the final decision by requesting additional public feedback during interim periods.
The SEC is known for its decision delays and often uses the entire 240-day window. Initial decisions on ETF applications from firms such as BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets were initially expected in mid-October. Additionally, the SEC extended the decision dates for spot Bitcoin ETF applications from Ark 21Shares and Global X ahead of a potential federal government shutdown.
At the end of August, a federal appeals court mandated that the SEC reconsider its decision to reject Grayscale Investments’ proposal to convert the Grayscale Bitcoin Trust into an ETF. This decision highlighted the SEC’s consistency issues in approving similar bitcoin products and further complicated the ongoing discussions and considerations surrounding crypto ETFs.
SEC Under Scrutiny for Bitcoin ETF Decisions
Congressman Rep. Warren Davidson questioned SEC Chairman Gary Gensler about whether the Judiciary’s authority is respected concerning Bitcoin ETF matters. This question was based on a previous statement by Gensler about a court ruling, in which the judge characterized the SEC’s reasons for rejecting spot Bitcoin ETF applications as “arbitrary and capricious.”
In response to questions about reviewing its approach to Bitcoin ETFs, Chairman Gensler stated that spot Bitcoin ETF applications are being “actively reviewed.
