Franklin Templeton, a leading global asset manager with $1.5 trillion under management, has received approval from the U.S. Securities and Exchange Commission (SEC) for its spot Bitcoin ETF application. This is a significant moment in the crypto industry, as Franklin Templeton’s influence in the asset management domain is immense.
The SEC’s decision on Franklin Templeton’s application is part of a broader review of spot crypto exchange-traded fund (ETF) applications. Another notable entity awaiting a decision is Hashdex. The spotlight on Franklin Templeton’s application is intensified due to its dominant role in the asset management arena.
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However, the path for crypto ETFs is not without obstacles. The SEC has announced that it will postpone its decisions on the ether ETF applications submitted by VanEck and ARK. According to the regulatory framework, the SEC has 240 days from the application listing in the Federal Register to approve or reject an ETF. This suggests that a final decision on these funds will likely be delivered in late May 2024. It is important to note that the SEC has the authority to seek public opinions at various stages, which could further delay the decision.
The SEC has a history of delaying decisions, often using the entire 240-day timeframe. Previously, a multitude of exchange-traded fund applications from prominent firms were set for a decision in mid-October but were extended due to a potential federal government shutdown.
The SEC’s approach to Bitcoin ETFs has faced criticism, particularly after a recent federal appeals court ruling. The court directed the SEC to reconsider its decision to deny Grayscale Investments’ request to transform its Grayscale Bitcoin Trust into an ETF, highlighting the inconsistencies in the SEC’s approval process for similar Bitcoin products.
Congressman Rep Warren Davidson questioned SEC Chair Gary Gensler about his respect for the Judiciary’s authority in Bitcoin ETF-related matters, stemming from Gensler’s earlier remarks that were criticized as “Arbitrary and Capricious” by a judge. In response, Gensler stated that applications for spot Bitcoin ETFs are under “active consideration”.
While the SEC’s approval of Franklin Templeton’s Bitcoin ETF application is a significant milestone, the future of crypto exchange-traded funds still faces challenges and uncertainties. The regulatory landscape continues to evolve, and all eyes will be on the SEC’s next moves and their potential implications for the future of crypto investments.