The US Securities and Exchange Commission (SEC) has opened the public comment window for the Bitcoin spot ETF application submitted by Franklin Templeton, the $1,5 trillion New York-based asset manager.
Yesterday, November 28, the SEC issued a request for public comments for Franklin Templeton’s proposed Bitcoin spot ETF, the Franklin Bitcoin ETF, which will be listed on the CBOE exchange, if it receives approval from the financial regulator.
With this request for comments, the SEC has opened a window for crypto industry stakeholders to provide valuable input on the design and structure of this Bitcoin-based investment vehicle. Specifically, the SEC is seeking public input on whether or not to approve the New York-based asset manager’s proposed Bitcoin spot ETF.
On release In a statement released by the SEC yesterday, the US securities regulator outlined its decision to initiate proceedings to approve or reject proposals from exchange-traded funds received to launch a spot Bitcoin ETF on the US market.
Franklin Templeton submitted its application for a Bitcoin spot ETF to the SEC in September. However, on November 15, the securities regulator published a circular announcing its decision to postpone its ruling on this crypto investment product. The SEC has up to 240 days to analyze and respond to each of the Bitcoin ETF applications submitted by asset managers.
The SEC was next scheduled to either rule or delay its ruling on the Franklin Templeton ETF by January 1, 2024. But as Bloomberg ETF analyst James Seyffart noted, the SEC delayed its decision on the exchange-traded fund 34 days before the scheduled date, which Seyffart interpreted as a sign that the SEC is lining up each fund manager’s applications, possibly with the goal of approving them simultaneously.
What does the SEC comment window mean for Franklin Templeton's Bitcoin ETF?
In its statement, the SEC clarifies that the initiation or commencement of proceedings to approve or reject Franklin Templeton's Bitcoin spot ETF application does not mean that it has made any decision on this Bitcoin investment product. However, as reported by this outlet last week, the crypto community is taking the financial regulator's action as a warning. Something positive for the expected approval of the Bitcoin ETF cash.
Blockworks’ Ben Strack stressed that the SEC opened the comment window for the Franklin Templeton ETF earlier than expected, so the securities regulator could be preparing to issue a massive ruling in January on the ETF applications on the table to launch this BTC-based investment vehicle.
Likewise, Scott Johnsson, general partner at Van Buren Capital, believes that the securities regulator is speeding up the process with Franklin Templeton's Bitcoin ETF application, in order to close the comment period on this investment product before January 10, apparently, with the possibility of approving all ETF applications at the same time.
Analysts believe the SEC may be considering approving all Bitcoin ETFs simultaneously, in order to prevent some funds from having a competitive advantage over others.
Although the SEC has not approved any of the Bitcoin ETFs submitted to it to date, several experts believe that the regulator will eventually approve this investment vehicle next year, with the most likely date being January 10.
Continue reading: What impact will a Bitcoin spot ETF have on investors?
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