The U.S. Securities and Exchange Commission (SEC) has officially acknowledged the application of Franklin Templeton, a global asset manager with $1.5 trillion in assets under management, to launch a spot Bitcoin exchange-traded fund (ETF). This is a significant development for the Bitcoin industry, as Franklin Templeton is one of the largest and most reputable asset managers in the world, with a history of over 70 years and a presence in over 30 countries.
A spot Bitcoin ETF would allow investors to gain exposure to the price of Bitcoin without having to buy, store, or manage the cryptocurrency themselves. It would also provide more liquidity, transparency, and regulatory oversight to the Bitcoin market.
The SEC has 45 days to approve, reject, or extend the review period of Franklin Templeton’s application, which was filed on September 27. The SEC can extend the review period up to 240 days, which means that a final decision could come as late as May 2024.
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However, some analysts are optimistic that the SEC will approve a spot Bitcoin ETF sooner rather than later, given the growing demand from institutional and retail investors, as well as the success of similar products in other jurisdictions, such as Canada and Europe. If approved, Franklin Templeton’s spot Bitcoin ETF would be the first of its kind in the U.S. and could potentially open the floodgates for more institutional adoption and innovation in the Bitcoin space.
The US Securities and Exchange Commission (SEC) has postponed its decision on whether to approve BlackRock’s Spot Bitcoin ETF, a fund that would track the price of bitcoin and hold the cryptocurrency in custody. The SEC said it needed more time to evaluate the proposal, which was filed in July, and solicit public comments. The new deadline for the decision is January 25, 2024.
SEC delays decision for BlackRock’s Spot Bitcoin ETF
BlackRock is the world’s largest asset manager, with over $9 trillion under management. It has been exploring the crypto space for a while, launching two funds that invest in bitcoin futures earlier this year. However, a spot bitcoin ETF would be a more direct way to expose investors to the digital asset, without the complexities and risks of dealing with futures contracts.
A spot bitcoin ETF would also be a first in the US, where the SEC has yet to approve any crypto ETFs, despite receiving dozens of applications from various firms. The regulator has expressed concerns about the potential for fraud, manipulation, and lack of liquidity in the crypto market, as well as the adequacy of custody and valuation methods.
Some analysts believe that a spot bitcoin ETF would have a positive impact on the price and adoption of bitcoin, as it would attract more institutional and retail investors to the space. Others argue that a spot bitcoin ETF would not be much different from existing products that allow investors to buy and sell bitcoin directly, such as Grayscale Bitcoin Trust or Coinbase.
The SEC’s delay for BlackRock’s spot bitcoin ETF comes amid a broader regulatory scrutiny of the crypto industry in the US, as lawmakers and authorities try to catch up with the rapid innovation and growth of the sector. The SEC has recently sued several crypto firms, such as Ripple and BitConnect, for allegedly violating securities laws, and has warned investors about the risks and challenges of investing in crypto assets.
