SEC Greenlights Franklin Templeton’s Bitcoin ETF

The SEC also faces legal challenges, as a court ordered a reconsideration of Grayscale's Bitcoin Trust ETF application.

SEC Greenlights Franklin Templeton's Bitcoin ETF
SEC Greenlights Franklin Templeton's Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) has officially approved Franklin Templeton’s Bitcoin ETF application.

Franklin Templeton is a $1.5 trillion asset manager. This action comes as the SEC contemplates applications from other entities, including Hashdex, for spot crypto exchange-traded funds (ETFs).

Due to its significant presence in the asset management industry, Franklin Templeton’s filing is particularly notable.

Moreover, the SEC has announced delays in its judgments regarding VanEck and ARK’s ETF applications.

The regulatory body has a maximum of 240 days from the date the filing appears in the Federal Register to approve or deny an ETF. This positions the decision date for these proposed funds at the end of May 2024.

Nonetheless, the SEC can request additional public input at multiple interim deadlines, potentially delaying the final decision.

The SEC has frequently used the entire 240-day window to delay decisions. BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets, among others, submitted ETF application packages in mid-October.

In addition, the SEC has extended its decision deadlines for spot Bitcoin ETF applications from Ark 21Shares and Global X in anticipation of a potential government closure.

In late August, a federal appeals court ordered the SEC to reconsider rejecting Grayscale Investments’ application to convert its Grayscale Bitcoin Trust into an ETF.

This decision brought to light inconsistencies in the SEC’s approval of comparable bitcoin products and added a new dimension to ongoing discussions and considerations regarding crypto ETFs.

Rep. Warren Davidson questioned SEC Chair Gary Gensler about his reverence for the authority of the judiciary in Bitcoin ETF-related matters.

This inquiry was prompted by a previous remark by Gensler regarding a court ruling in which the judge described the SEC’s rationale for denying spot Bitcoin ETF applications as “arbitrary and capricious.”

In response to inquiries regarding the commission’s strategy for revising its posture toward a Bitcoin ETF, Chair Gensler stated that applications for spot Bitcoin ETFs are “actively being considered.”