The unexpected move by the Securities and Exchange Commission (SEC) to commence a public comment period for spot Bitcoin (BTC) ETF applications has sparked optimism regarding the launch of these financial products.
On November 28, the SEC issued filings initiating proceedings to solicit public input on the proposed Franklin Bitcoin ETF and Hashdex Bitcoin Futures ETF funds.
Analysts believe that this action indicates a potential acceleration in the SEC's timeline for approving an eagerly anticipated "spotcoin" ETF.
Traditionally, the SEC has 240 days to grant or reject an ETF application and is obligated to provide updates on its decision at specific intervals.
Franklin Templeton's application was originally slated for a decision on January 1.
However, by initiating the public comment period ahead of schedule, the SEC may be signaling its intent to expedite the approval process for spotcoin ETFs.
Bloomberg analyst James Seyffart observed that the SEC's decision to initiate a comment period for Hashdex "all but confirms for me that this was likely a move to align every applicant for potential approval by the January 10, 2024 deadline."
Finance lawyer Scott Johnsson concurred, suggesting that the SEC filings imply that the regulator is gearing up to approve the funds around January 10.
"It only makes sense," he tweeted. "I'm pretty sure we can count on this one."
Franklin Templeton, a firm managing approximately $1.5 trillion in assets, initially filed for a spot Bitcoin ETF in October.
However, its application encountered a delay on November 15.
On November 29, Franklin Templeton revised its prospectus, stating that it had addressed the SEC's inquiries and concerns regarding its application.
Expectations for SEC Approval of Spot Bitcoin ETFs Historically, the SEC has rejected or delayed spotcoin ETFs due to worries about market manipulation and investor safeguards.
Nevertheless, following a significant lawsuit loss to Grayscale Investments in August, the agency began collaborating more closely with a dozen firms to explore the possibility of introducing such funds to the market.
Many industry participants, including Cathie Wood of ARK Invest, believe that the SEC will simultaneously approve multiple applications to prevent any single company from gaining a first-mover advantage.
Analysts at financial services firm Cantor Fitzgerald also share the belief that the long-awaited spot BTC ETF is moving closer to becoming a reality.
The company, renowned for its prime brokerage and investment banking services, has grown confident in the approval of applications from asset managers seeking to launch a spot ETF for Bitcoin.
Currently, the SEC is reviewing 13 applications for spot BTC ETFs.
However, the most recent submission by Swiss-based Pando Asset, which was filed just two days ago, is unlikely to be considered alongside the earlier submissions.
It is worth noting that the optimism surrounding the launch of a spot Bitcoin ETF has contributed to the recent rally in crypto markets, with the flagship cryptocurrency surging to as high as $38,000.
By: Best Crypto Exchanges
source:https://cryptonews.com/news/bitcoin-etf-decision-dates-approach-what-to-expect-in-january.htm
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