SEC Reviews Franklin and Hashdex Crypto ETFs, Postpones Ruling on VanEck and ARK Ether ETFs

Police & Regulations
Sep 29, 2023 at 10:48 am

In light of potential government shutdown concerns, the U.S. Securities and Exchange Commission (SEC) has recently decided to grant extensions for ARK and GlobalX spot bitcoin ETFs.

Currently, the SEC is actively reviewing applications for spot crypto exchange-traded funds (ETFs) from notable industry players like Franklin Templeton and Hashdex. Concurrently, the Commission has made public its decision to delay the approval process for ether ETF applications submitted by VanEck and ARK.

Official documents filed with the SEC affirm that Franklin Templeton has officially requested approval for a bitcoin spot ETF, while Hashdex has applied for a spot ether ETF.

In accordance with SEC protocols, the Commission is allotted a maximum of 240 days to make a determination on an ETF application from the date it is officially published in the Federal Register. This positions the anticipated decision date for these proposed funds in late May 2024. Moreover, there exist several intermediate deadlines within this timeframe, during which the SEC may seek additional input from the public, potentially leading to a postponement in the final decision.

Historically, the Commission has demonstrated a proclivity for utilizing the full 240-day evaluation period. Initially, a decision regarding a cluster of ETF applications from prominent industry players like BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets was anticipated in mid-October.

Considering the looming possibility of a federal government shutdown, the SEC has chosen to prolong the assessment deadlines for spot bitcoin ETF applications from Ark 21Shares and Global X. Additional extensions may be announced by Friday.

Towards the latter part of August, a federal appeals court issued a directive for the U.S. SEC to conduct a reevaluation of its rejection of Grayscale Investments' appeal to convert its Grayscale Bitcoin Trust into an ETF. The court underscored irregularities in the SEC's approval process for analogous bitcoin-based financial products.

Read more: Ethereum ETF Hype: VanEck's Entry

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