A U.S.-based Bitcoin (BTC) spot exchange-traded fund (ETF) now has “clarity” to potentially receive approval simultaneously, ETF analysts say, following the U.S.’s early decision to delay bids for Franklin Templeton and Hashdex ETFs aisle”.
November 28 (Twitter) postalBloomberg ETF analyst James Seyffart said the SEC delayed its decision on the application 34 days earlier than the January 1, 2024 decision deadline.
The SEC asked Templeton and Hashdex to comment on the forms needed to eventually list the ETF and begin trading. The period for comments and rebuttals is 35 days.
Seyffart and his colleague Eric Balchunas believe that the Bitcoin ETF has a 90% chance of being approved as a spot Bitcoin ETF by January 10 next year, and the two delays “almost confirm to me that this is likely to be the case.” Give every applicant until January 10th to be approved.” 10, 2024 deadline,” Seyffart said.
Balchunas agreed, posting on X that the SEC “might want to let them go and clear the runway.”
Odds are hoping to get them out of the way and clear the runway.
— Eric Balchunas (@EricBalchunas) November 28, 2023
However, commercial litigation attorney Joe Carlasare believes these delays increase the likelihood of approval in March 2024, as the solicitation period for the Franklin ETF bid was extended to January 3, 2024, while the SEC usually takes up to three weeks to review comments.
The Franklin Bitcoin Spot ETF comment period has now been extended to January 3.
The SEC typically reviews comments for at least 2-3 weeks. So while it’s not guaranteed, it increases the likelihood of approval in March.
Still, January is probably the most popular.
— Joe Carlasare (@JoeCarlasare) November 28, 2023
“Still, January is probably the most popular,” he added.
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Franklin also filed an updated Form S-1 (a document to register securities with the SEC) for its ETF on November 28, after Seyffart earlier highlighted that Franklin was the only bidder that had not yet submitted an updated prospectus.
Responding to the filing, Balciunas said that while he was in favor of having all ETFs launch at the same time, “it seems a bit unfair” that Franklin might be allowed to launch an ETF on the same day as other providers despite submitting the form months later. .
While I’m generally in favor of having them launch at the same time, Franklin joined too late than others, like 5 months after ARK filed, but they might be able to launch on the same day.. Seems a bit unfair… but I guess the SEC No boundaries can be drawn here
— Eric Balchunas (@EricBalchunas) November 28, 2023
There are currently 12 spot Bitcoin ETFs submitting applications to the SEC, including bids from Grayscale and BlackRock. With the exception of ARK Invest’s bid, which the SEC must approve or reject by January 10, 2024, most companies have final decision dates in March.
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