SEC Delays ETF Proposals from Franklin Templeton, Global X, and Hashdex
The U.S. Securities and Exchange Commission (SEC) has further postponed three Bitcoin and Ethereum ETF proposals from Franklin Templeton, Global X, and Hashdex.
SEC Delays ETF Proposals from Franklin Templeton, Global X, and Hashdex
According to a statement released on November 17 (U.S. time), the U.S. Securities and Exchange Commission (SEC) has decided to extend the review deadlines for the Bitcoin spot ETF proposals from Franklin Templeton and Global X, as well as the Ethereum ETF proposal from Hashdex.
The new deadline for reviewing Franklin Templeton's and Global X's Bitcoin spot ETF proposals is early 2024.
UPDATE: There it is. Franklin #Bitcoin ETF officially delayed *as expected*. pic.twitter.com/mncRibrwU7
— James Seyffart (@JSeyff) November 17, 2023
UPDATE: @GlobalXETFs spot #Bitcoin ETF 19b-4 has been delayed *as expected*. This one wasn't due till Nov 21. Comment period should begin and last at least 35 days on this application. pic.twitter.com/E5xsrd3Shh
— James Seyffart (@JSeyff) November 17, 2023
Additionally, the SEC has also postponed the review date for Hashdex's mixed Ethereum ETF proposal, which aims to hold both Ethereum in spot and futures formats, with the new deadline also set for early 2024.
Earlier this week, the SEC announced delays for two Bitcoin spot ETF proposals from Hashdex and an Ethereum futures ETF proposal from Grayscale.
Hearing chatter SEC’s Trading & Markets engaged w/ exchanges this week on spot bitcoin ETF 19b-4s, is advising them they'd like the ETFs to do cash creates (vs in-kind), and has asked them to get in amendments in next couple wks. This isn't unexpected but good sign nonetheless.
— Eric Balchunas (@EricBalchunas) November 17, 2023
Therefore, none of the 12 Bitcoin spot ETF proposals under SEC review have been approved, contrary to some analysts' optimistic signals reported by Bloomberg recently.
However, analyst Eric Balchunas stated on the evening of November 17 that he had heard information suggesting the SEC is requesting exchanges supporting Bitcoin spot ETFs to establish markets in USD instead of Bitcoin to reduce barriers for broker-dealers. The SEC hopes that exchanges can adjust their proposals in the coming weeks.
Balchunas noted that while this development wasn't surprising, it signals progress in SEC's evaluation of Bitcoin ETF proposals. Bloomberg analysts maintain their prediction that 90% of Bitcoin spot ETFs will be approved by 2024.
Bitcoin's price surged over $800 from $35,950 to $36,800 on the evening of November 18 following Eric Balchunas' disclosure, before adjusting back to around $36,400.
Chart of BTC/USDT pair on Binance at 09:35 AM on November 18, 2023
The recent SEC delays in crypto ETF decisions have not discouraged leading Wall Street firms like BlackRock and Fidelity, who this week submitted proposals for Ethereum spot ETFs following previous Bitcoin spot ETF submissions.
As reported by Coin68, ETFs have been a driving force behind the cryptocurrency market's growth since late October, initiated by major financial players on Wall Street like BlackRock. However, the SEC has yet to approve any Bitcoin spot ETF, citing concerns over market manipulation and fraud that threaten investors. A prominent example is the impersonation of BlackRock to submit an ETF XRP establishment application in Delaware.
