Just-In: Franklin Templeton’s Bitcoin ETF Application Gets SEC Nod

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged the spot Bitcoin ETF application from Franklin Templeton, a global asset manager with $1.5 trillion under management. This move comes as the SEC also considers applications for spot crypto exchange-traded funds (ETFs) from other entities, including Hashdex. Franklin Templeton’s filing is particularly notable due to its substantial presence in the asset management sector.

Moreover, the SEC has announced delays in its decisions regarding the ether ETF applications from VanEck and ARK. The regulatory body has a maximum of 240 days from the date the filing appears in the Federal Register to approve or deny an ETF. This places the decision date for these proposed funds in late May 2024. However, the SEC can ask for additional public feedback during several interim deadlines, potentially delaying the final decision.

SEC Delays Decisions on Multiple Crypto ETFs

The SEC has been known to delay decisions, frequently utilizing the entire 240-day window. Decisions on a batch of 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, before a potential federal government shutdown, the SEC has extended its decision deadlines for spot Bitcoin ETF applications from Ark 21Shares and Global X.

The federal appeals court in late August mandated the SEC to reevaluate its rejection of Grayscale Investments’ bid to convert its Grayscale Bitcoin Trust into an ETF. This ruling highlighted inconsistencies in the SEC’s approval of similar bitcoin products and has added another layer to the ongoing discussions and considerations regarding crypto ETFs.

SEC Under Scrutiny for Bitcoin ETF Decisions

Congressman Rep Warren Davidson queried SEC Chair Gary Gensler about his respect for the authority of the Judiciary in matters about the Bitcoin ETF. This inquiry was based on Gensler’s prior comment on a court ruling, where the judge labeled the SEC’s basis for denying spot Bitcoin ETF applications as “Arbitrary and Capricious.”

In response to questions about the commission’s approach to revising its stance toward a Bitcoin ETF, Chair Gensler noted that the applications for spot Bitcoin ETF are under “active consideration.” 

Also Read: “Bitcoin Is Not A Security”- SEC Chair Gary Gensler