Bitcoin ETF approval is affected by SEC decisions, with Franklin Templeton and Hashdex gaining and VanEck and ARK lagging.
The fight to approve Bitcoin exchange-traded funds (ETFs) is still going strong. Recent developments have moved the SEC closer to Franklin Templeton and Hashdex ETFs while pushing VanEck and ARK ETFs away.
News about the acceptance of Bitcoin ETFs is hard to interpret
In the realm of exchange-traded funds (ETFs), the US Securities and Exchange Commission (SEC) has recently taken a number of actions.
This article will examine the SEC’s review of ETF applications submitted by Hashdex and Franklin Templeton, as well as the reasons for VanEck and ARK’s decision-making delays with regard to spot ether ETFs.
Hashdex is requesting clearance for a spot ether ETF, while Franklin Templeton has applied for both a spot ETF on Bitcoin.
An ETF application may be approved or denied by the SEC within a maximum of 240 days following the date of publication in the Federal Register.
According to this schedule, a decision on these suggested funds will be made by the end of May 2024. It is important to remember, though, that the SEC retains the authority to ask for more public input at different interim deadlines, which may cause significant delays in the final judgment.
Security Exchange Commission’s tardiness
In the past, the SEC has frequently made judgements using the entire 240-day term. Major participants in the cryptocurrency space, including as BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets, have high hopes for a number of their ETF applications at the moment.
At first, mid-October was the scheduled time for the decisions. However, the SEC extended the deadlines for bitcoin ETF filings from Ark 21Shares and Global X owing to worries over a potential federal government shutdown, and more delays might be in store.
A federal appeals court made a significant ruling in late August, directing the SEC to reevaluate its decision to reject Grayscale Investments’ application to convert its Grayscale Bitcoin Trust into an exchange-traded fund (ETF).
The SEC’s inconsistent clearance process for bitcoin items that are comparable was brought up by the court. Four members of the US Congress—Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres—were alerted to this decision.
Congresspeople’s readiness to approve ETFs based on Bitcoin
A letter dated September 26th, written to SEC Chairman Gary Gensler, demanded that Bitcoin spot exchange-traded funds (ETFs) be approved immediately.
They cite Grayscale Investments’ legal precedent—which it established by obtaining an evaluation of its proposed ETF—in support of their claim that the SEC is biased against spot bitcoin ETFs.
The SEC’s justification was criticized by the court as “arbitrary and capricious,” particularly in light of the fact that the organization has previously authorized investment products associated with Bitcoin futures.
The legislators emphasized that by offering a more secure and open point of access to bitcoin, a regulated spot ETF would enhance investor protection.
They emphasized that Congress must make sure that the SEC approves investment products in accordance with the guidelines that Congress has established.
In the end
In conclusion, the bitcoin ETF market has received a lot of attention as a result of recent SEC judgments and actions.
The market is more uncertain as a result of the delays in VanEck and ARK’s ether ETF decisions, while Hashdex and Franklin Templeton await their conclusions.
Members of Congress are pressing for the early approval of spot ETFs on Bitcoin in response to the federal appeals court’s decision in favor of Grayscale Investments. This highlights the need of investor protection and transparency in this quickly developing market.
The industry is still awaiting the SEC’s final rulings while the story of bitcoin exchange-traded funds (ETFs) unfolds.
