The US Securities and Exchange Commission (SEC) has once again delayed its decisions on spot Bitcoin exchange-traded fund (ETF) applications, causing frustration and speculation within the crypto industry. This latest move by the SEC has extended the decision-making period for both Global X and Franklin Templeton’s applications, leaving the fate of a spot Bitcoin ETF uncertain. In this article, we will explore the implications of these delays and what it means for the future of the crypto industry.
The SEC announced that it expects public comments on Global X’s proposal within the next 35 days, effectively pushing the decision deadline to December 22. Similarly, the decision on Franklin Templeton’s spot Bitcoin ETF application has also been postponed, with the agency instituting a longer decision period that could extend into early 2024. These delays signal the SEC’s intention to utilize the full allotted review window for the current ETF applicants.
The SEC’s continued delays and non-transparent approach to crypto ETFs have been a source of frustration within the industry. Despite mounting anticipation surrounding the launch of a spot Bitcoin ETF, the regulatory body has remained cautious and hesitant to approve such products. The SEC’s concerns about the potential for manipulation on offshore spot platforms have been cited as a reason for the delays.
Many industry experts have already voiced their skepticism regarding the approval of a spot Bitcoin ETF before 2024. The SEC’s track record of delays and its cautious approach to cryptocurrency regulation have led to doubts about the agency’s willingness to greenlight such products. These delays, coupled with the ongoing concerns surrounding market manipulation, have dampened hopes for a speedy approval.
The optimism surrounding the launch of a spot Bitcoin ETF has been a driving force behind the recent rally in crypto markets. The anticipation of a regulated investment vehicle for Bitcoin has spurred renewed interest and pushed the flagship cryptocurrency to new highs. However, with the SEC’s decision delays, market sentiment may start to wane, leading to increased volatility and uncertainty in the coming months.
Financial services firm Cantor Fitzgerald believes that the long-awaited spot Bitcoin ETF is inching closer to reality. They argue that the market surveillance procedures proposed by new applicants could address the SEC’s concerns about potential manipulation on offshore platforms. If these procedures prove sufficient in mitigating the regulatory risks, the SEC may be more inclined to approve a spot Bitcoin ETF.
The SEC’s decision to postpone its rulings on spot Bitcoin ETF applications has left the crypto industry in a state of uncertainty. While frustrations mount and doubts about approval in the near future persist, there is still hope that the market surveillance procedures proposed by applicants could pave the way for SEC approval. As the industry eagerly awaits the SEC’s final verdict, only time will tell if a spot Bitcoin ETF will become a reality and what impact it will have on the crypto market as a whole.
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