KEY POINTS
- The SEC's decision on the spot Bitcoin ETF application of Franklin came way too early from the scheduled deadline of Jan. 1, 2024
- The regulator's latest move on Franklin might also apply to Hashdex
- There are speculations that the SEC might approve multiple spot Bitcoin ETFs at the same time
The U.S. Securities and Exchange Commission on Tuesday delayed the approval of Franklin Templeton Investments' spot Bitcoin exchange-traded fund (ETF) application. The regulator's announcement came way too early as the deadline was set for Jan. 1, 2024. This has surprised industry watchers, triggering speculations that the SEC could be hinting at a "full wave" of spot Bitcoin ETF approvals.
Bloomberg Intelligence ETF analyst James Seyffart tweeted that of the 12 spot Bitcoin ETF applicants, Franklin is the only issuer who has not submitted an updated S-1 form yet.
"Wow. SEC went super early on Franklin. They weren't due for another decision until Jan 1. Notably, Franklin is the only issuer who didn't submit an updated S-1 yet. Wonder if that has any impact here," the tweet read.
The SEC's latest move on Franklin might also apply to Hashdex, Seyffart said, adding it might set in motion what industry watchers, including ARK Invest's Cathie Wood, have been discussing earlier about a potential full wave of approvals.
Moreover, the ETF analyst predicted the SEC might approve a full wave of spot Bitcoin ETF applications in the early part of January.
"Going super early on Franklin today (and potentially @hashdex coming too?) would set things up for a full wave of approvals in early January. Might be the reasoning," Seyffart added.
Finance lawyer Scott Johnson said the SEC's move could be due to the commission's plan to have a comment period before the final deadline on Jan. 10, 2024.
"They might have chosen to do this early so they could have the comment period end before Jan 10, in order to approve everyone at the same time," Johnson wrote on X.
They might have chosen to do this early so they could have the comment period end before Jan 10, in order to approve everyone at the same time. https://t.co/L5q65I6EDa
— Scott Johnsson (@SGJohnsson) November 28, 2023
In October, ARK Invest's Wood expressed optimism about the progress of the spot Bitcoin ETF application of ARK and 21Shares and the possibility of multiple approvals happening simultaneously.
Bloomberg Intelligence senior ETF analyst Eric Balchunas at the time said Wood was "echoing what we've been hearing, saying and predicting but always good for an actual issuer (who is interacting with them) to say it and w this much detail."
Cathie echoing what we’ve been hearing, saying and predicting but always good for an actual issuer (who is interacting w them) to say it and w this much detail. Via @BobPisani https://t.co/VimpVnD0uJ
— Eric Balchunas (@EricBalchunas) October 18, 2023
"The SEC is engaging with us for the Bitcoin ETF application. It indicates a change in the SEC's behavior. Bitcoin ETFs will definitely be approved, and multiple ETFs will receive approval simultaneously. The court will mandate the SEC," Wood said.
