According to Yahoo News, the Securities and Exchange Commission (SEC) has started a public comment period on spot bitcoin exchange-traded fund (ETF) applications from Wall Street investment-management firm Franklin Templeton and Brazil-based cryptocurrency-focused investment firm Hashdex. The agency announced this in a filing on November 28. The SEC has 240 days to approve or deny an ETF filing and must provide updates on its decision at certain intervals. The public comment period's early start may indicate that the SEC is accelerating its timeline for an anticipated spotcoin ETF approval.
Bloomberg analyst James Seyffart commented on the SEC's move to open a comment period on Hashdex, stating that it all but confirms the likelihood of lining up every applicant for potential approval by the January 10, 2024 deadline. Franklin Templeton, which has approximately $1.5 trillion in assets under management, first filed for a spot bitcoin ETF in October. Its filing was previously delayed on November 15. On November 29, Franklin Templeton amended its prospectus, stating that it had responded to the SEC's questions and concerns about its application.
Despite asset managers attempting to launch a spot bitcoin ETF for years, the SEC has denied or delayed those funds due to concerns about market manipulation and investor protection. However, after the SEC lost a watershed lawsuit to Grayscale Investments in August, it began working more closely with about a dozen firms to potentially bring the funds to market. Many hopeful firms, including ARK Invest's Cathie Wood, believe the SEC will approve multiple applications simultaneously to avoid giving any single firm a first-mover advantage.
