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- Bloomberg analyst James Seyffart has disclosed that spot Bitcoin ETF approval could happen in January following a delay in decision by the SEC.
- Analysts believe that the SEC is attempting to approve all ETF applications on the same date to ensure fairness.
CNF recently reported on the latest news that the US Securities and Exchange Commission has delayed the decisions on the Spot Bitcoin Exchange-Traded Fund (ETF) applications by Franklin Templeton and Hashdex. This has generated a series of reactions from crypto experts with the latest coming from Bloomberg’s James Seyffart. According to him, this is a good sign as it indicates the Commission’s willingness to announce approvals in January.
Seyffart believes that the ruling on Franklin’s bid came earlier than expected. He also disclosed earlier that Franklin was the only filer who did not submit an updated S-1. It is reported to have been dropped after this disclosure.
Wow. SEC went super early on Franklin. They weren’t due for another decision until Jan 1. Notably, Franklin is the only issuer who didn’t submit an updated [Form] S-1 (registration of asset-backed security) yet. Wonder if that has any impact here…Going super early on Franklin today (and potentially Hashdex coming too?) would set things up for a full wave of approvals in early January.
One interesting observation is that the SEC did not make an early ruling on the Hashdex’s bid. Instead, it was pushed to a specific date. According to the Bloomberg analyst, the SEC is planning to line all the spot Bitcoin ETF applications up and approve them on the same date to ensure fairness. To him, the approvals could be announced by the January 10, 2024 deadline.
Bloomberg Analyst Believes Things Could Go Wrong for the Bitcoin ETF Approval
Seyffart further clarified that the process may not be as smooth as it is expected as the Commission may even decide to deny the bids.
Gonna sprinkle some caveats here: This is just the 19b-4 (new derivative security product filing) approvals. We know from updates and other sources that [the]SEC still isn’t quite ready to approve the S-1s (prospectuses) just yet. So approval could happen here without immediate launch. They could still be denied.
Scott Johnsson, a finance lawyer at Davis Polk also spoke about the early decision made by the SEC on Franklin’s bid. It is important to know that the Commission is seeking public input on the proposals. The period for both comments and their responses would be done within 35 days according to reports. Johnson believes that the early decision could conclude the comment period before January 10 for multiple approvals.
Really the only way it makes sense. Pretty sure we can lock this one up. […] The issue was Global X had a comment period ending December 29. So, if the SEC wanted to approve all at the same time, they had to do this. […] This sets up an approval open period sometime after Jan 2 and before Jan 10. Or more accurately no later than Jan 10.
A spot Bitcoin ETF approval could open the market up for a significant inflow of funds, and could set the Bitcoin (BTC) price up for a new all-time high. The price action of the asset is currently positive as Bitcoin has surged by 2.36 percent in the last 24 hours to trade at $38,656.66. Bitcoin also has a bullish market sentiment with a score of 100/100.
